UTTAM SUGAR MILLS LIMITED

(Originally incorporated as Associated Sugar Mills Limited on October 04, 1993 vide registration no. 55-55495 and received the Certificate for Commencement of Business on April 08, 1994 from the Registrar of Companies, N.C.T. of Delhi and Haryana. The name of our Company was changed to Uttam Sugar Mills Limited w. e. f. November 24, 1998.)

Registered Office: 7C, 1st Floor, J Block Shopping Centre, Saket, New Delhi - 110 017.
Telefax: +91 011 2956 1721. E-mail: uttamipo@uttamsugar.com; Website: www,uttamsugar.com
Corporate Office: A-2E, III Floor, CMA Tower, Sector-24, Noida (UP) - 201301. Tel.: +91 0120 241 2716-8, 241 2722-6;
Fax: +91 0120 241 2715. Contact Person: Mr. G. Ramarathnam-Company Secretary & Compliance Officer

BASIS OF ALLOCATION

PUBLIC ISSUE OF 40,00,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH OF UTTAM SUGAR MILLS LIMITED (HEREINAFTER REFERRED TO AS THE "COMPANY" OR "ISSUER") FOR CASH AT A PREMIUM OF RS. 330 PER EQUITY SHARE AT A PRICE OF RS. 340 PER EQUITY SHARE AGGREGATING TO RS. 13600 LACS (HEREINAFTER REFERRED TO AS THE "ISSUE"). THE ISSUE WOULD CONSTITUTE 15.53% OF THE POST ISSUE PAID UP CAPITAL OF OUR COMPANY.

ISSUE PRICE: RS. 340 PER EQUITY SHARE OF FACE VALUE OF RS. 10/- EACH.

ISSUE PRICE IS 34 TIMES OF THE FACE VALUE.

In terms of Rule 19(2) (b) of the SCRR, this Issue was made through a 100% Book Building Process wherein a minimum of 60% of the Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIBs portion that was to be specifically reserved only for Mutual Funds and Mutual Fund applicants were to be also eligible for proportionate allocation under the balance available for QIBs). Further, upto 10% of the Issue was to be available for allocation on a proportionate basis to Non-Institutional Bidders and upto 30% of the Issue was to 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 44019 applications for 18531740 equity shares resulting in 4.6329 times subscription. The details of the application received in the Issue from Retail Individual Bidders, Non Institutional Investors and Qualified Institutional Buyers categories is as under:

* Including bids received at cut off price # After eliminating cheque returns.

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

The Basis of Allotment was finalised in consultation with National Stock Exchange of India Limited ("NSE") on April 1, 2006.

A) Allocation to Retail Individual Bidders

The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs. 340 per Equity Share, was finalized in consultation with NSE. The category was subscribed 4.30352 times. The total number of shares allotted in this category is 1200014 Equity Shares. The sample of the category-wise details of the Basis of Allocation are as under:

B) Allocation to Non Institutional Bidders

The Basis of Allocation to the Non Institutional Investors, who have bid for at the Issue Price of Rs. 340 per Equity Share, was finalized in consultation with NSE. The category was subscribed 1.4391 times. The total number of shares allotted in this category is 399986 Equity shares. A sample of category-wise details of the Basis of Allocation are as under:

C) Allocation to Qualified Institutional Bidders:
Allocation to QIBs has been made on a proportionate basis in consultation with NSE. As per the SEBI Guidelines, Mutual Funds were initially allotted 5% of the QIB portion (120000 Equity Shares) and the remaining QIB portion (2280000 Equity Shares) was allocated to Net Issue.

The Board of Directors of Uttam Sugar Mills Limited at its Meeting held at Noida on April 3, 2006 has approved the basis of allocation of shares and allotted the shares to various successful applicants.

Bidders should note that on the basis of name of the Bidders, DP ID and Client ID provided by them in the Bid cum Application Form, Registrar to the Issue has obtained from the Demographic Details of the Bidders details such as address, bank account details alongwith the nine digit MICR Code and occupation (herein after referred to as "Demographic Details") from the DEPOSITORIES. These Demographic Details have been used for all correspondence with the Bidders including mailing of the refund orders/CANS/Allocation Advice/Refund Advice, printing of bank particulars on the refund order and for refunds through ECS/Direct Credit/RTGS. The Demographic Details given by the Bidders in the BID CUM APPLICATION FORM would not be used for these purposes by the Registrar. Investors should also note that the bank particulars received from the Depositories have been used for refund through ECS/Direct CrediURTGS and overprinted on the refund orders. Applicants having a bank account in any of the 15 centres where clearing houses are managed by the Reserve Bank of India (RBI) viz. Ahmedabad, Bangalore, Bhubaneshwar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Kanpur, Kolkata, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram, will get refunds through mandatory Electronic Clearance Scheme (ECS) only, except where applicant is otherwise disclosed as eligible to get refunds through direct credit or Real Time Gross Settlement (RTGS). Applicants having a bank account at any of the 15 centers detailed above, and whose bid amount exceeds Rs. 1 million, were eligible to exercise the option to receive refunds, if any, through RTGS if the IFSC code was mentioned in the Bid Cum Application Form.

The despatch of Refund Orders has been completed by April 4, 2006 to the address 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 printed with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to the successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has submitted the listing application on April 4, 2006. The Company is taking steps to get the Equity shares admitted for trading on National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE

The details of the allocation made has been hosted on the website of Registrars to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.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:

Intime Spectrum Registry Limited
C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup - (W), Mumbai - 400 078.
Tel.: +91 22 2596 0320-28, Fax: +91 22 2596 0329
Website: www.intimespectrum.com, E-mail: usmlipo@intimespectrum.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF UTTAM SUGAR MILLS LIMITED.