XL TELECOM LIMITED
[Registration Number 01-5844]

[The Company was originally incorporated as a Private Limited company under the provisions of the Companies Act, 1956 on October 3,1985 under the name and style of "XL Cable Splices Private Limited^" with The Registrar of Companies, Andhra Pradesh at Hyderabad and subsequently the name of the company was changed to "XL Telecom Private Limited" on December 18, 1985. Later, by virtue of Special Resolution passed on October 29,1990, the Company was converted into a Public Limited Company. Consequent on its conversion, The Registrar of Companies, Andhra Pradesh, Hyderabad has issued a fresh certificate of incorporation dated December 31,1990.]

Registered Office^- 335, Chandralok Complex, Sarojini Devi Road, Secunderabad - 500 003

(On incorporation the Registered Office was located at A1/3, Chandralok Complex, Sarojini Devi Road, Secunderabad-500 003, Andhra Pradesh and was shifted to 335, Chandralok Complex, Sarojini Devi Road, Secunderabad - 500 003 w.e.f. May 18, 1987)
Tel.: +91 40 2784 9094, 2784 0109, 2784 7287 Fax: +91 40 2784 0081. Website. www.xltelecom.net
Contact Person: Ch. Bhavani, Company Secretary & Compliance Officer, Email : chbhavani@xltelecom.net,

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 39,56,808 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 150/- PER EQUITY SHARE AGGREGATING TO RS. 5,935.21 LAKHS (HEREINAFTER REFERRED TO AS "THE ISSUE") BY XL TELECOM LIMITED ("THE COMPANY" OR "THE ISSUER"). THE FACE VALUE OF THE EQUITY SHARES IS RS. 10/- EACH. THE ISSUE INCLUDES A RESERVATION OF 1,76,808 EQUITY SHARES OF RS. 10/- EACH AGGREGATING TO RS. 265.21 LAKHS FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES OFTHE COMPANY.THE NET ISSUE TO THE PUBLIC SHALL BE OF 37,80,000 EQUITY SHARES OF RS. 10/ EACH AGGREGATING TO RS.5,670.00 LAKHS. THE NET ISSUE WOULD CONSTITUTE 26.07% OF THE POST ISSUE PAID UP CAPITAL OF THE COMPANY.

The Issue was made through the 100% book building process wherein upto 50% of the Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers (out of which 5% of the QIB portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remaining QIB portion shall be available for allocation on a proportionate basis to all Qualified Institutional buyer, including Mutual Funds, subject to valid bids being received at or above Issue price. Further, atleast 15% of the Net Issue to the public shall be available for allocation on a proportionate basis to Non- Institutional Bidders and atleast 35% of the Net Issue to the public shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 31792 applications for 31797855 equity shares (including reserved category for Employees & Shareholders of Group Company) resulting in 8.036 times subscription. The details of the valid applications received in the Issue from Retail, Non Institutional Investor, Qualified Institutional Investor and Employee categories are as under:

Final Demand
A sample of the final demand at different bid prices is as under

The Basis of Allotment was finalized in consultation with The Bombay Stock Exchange Limited on December 20 2006

A. Allocation to Retail Investors

The Basis of Allocation to the Retail Investors, who have bid at cut-off or at and above the Issue Price of Rs.150/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 6.59 times.The total number of shares allotted in this category is 1324416 Equity Shares. The category-wise details of the Basis of Allocation are as under:

B. Allocation to Non Institutional Investors
The Basis of Allocation to the Non-Institutional investors, who have bid at cut-off or at and above the Issue Price of Rs.150/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 7.5 times. The total number of shares allotted in this category is 567000 Equity Shares.The category-wise details of the Basis of Allocation area as under (Sample):

C.Allocation to QIBs

The Committee of Directors(IPO) of the Company at its Meeting held at Secunderabad on December 21, 2006 has approved the basis of allocation.

The Refund of Orders due to applicants has been dispatched to the addresses of the investors as registered with the depositories. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to successful applicants has been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. XLTelecom Limited is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE

This details of the allocation made are being hosted on the Website of Registrars to the Issue, Bigshare Services Private Limited at www.bigshareonline.com

All future correspondence in this regard may kindly be addressed to the Registrars to the Issue quoting full name of the First/ Sole applicant, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place-where the bid was submitted and payment details at the address given below:

Bigshare Services Pvt. Ltd.
E/2, Ansa Industrial Estate, Saki Vihar Road, Saki Naka, Andheri (E), Mumbai 400 072.
Tel: +91-22-2847 3747, Fax: +91-22-2847 5207
E-mail: bighshare@bom7.vsnl.net.in   Website: www.bigshareonline.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING ORTHE BUSINESS PROSPECTS OF XL TELECOM LIMITED.