GODAWARI POWER AND ISPAT LTD.

(Incorporated on September 21, 1999 under the Companies Act, 1956 and was issued a Certificate of Commencement of Business on November 15, 1999. The Company changed its name from "Ispat Godawari Limited" to "Godawari Power and Ispat Limited" on June 20, 2005.)

Registered Office: Plot No. 428/2, Phase 1, Industrial Area, Siltara-493 111, Dist. Raipur, Chhattisgarh, India.
Tel.: +91-7721- 264342/406130, Fax: + 91-7721-264341/403701.

Corporate Office: First Floor, Hira Arcade, Near New Bus Stand, Pandri, Raipur - 492 001, Chhattisgarh, India.
Tel.: +91-771- 405 7600. Fax: +91-771- 405 7601. Contact Person: Mr. Y. C. Rao, Email: ycrao@gpilindia.com,
Tel.: +91- 771- 4054279. Website: www.gpilindia.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 8,695,000 EQUITY SHARES OF FACE VALUE RS. 10/- EACH AT A PRICE OF RS. 81 PER EQUITY SHARE FOR CASH AT A PREMIUM AGGREGATING TO RS. 704.30 MILLION (HERE IN AFTER REFERRED TO AS THE "ISSUE") COMPRISING OF 400,000 EQUITY SHARES OF RS. 10/- EACH RESERVED FOR THE EMPLOYEES OF THE COMPANY AND A NET ISSUE TO THE PUBLIC OF 8,295,000 EQUITY SHARES OF 10/-. THE ISSUE WOULD CONSTITUTE 35% OF THE POST ISSUE PAID-UP CAPITAL OF GODAWARI POWER AND ISPAT LIMITED

ISSUE PRICE: RS. 81 PER EQUITY SHARE OF FACE VALUE RS. 10. THE ISSUE PRICE IS 8.1 TIMES THE FACE VALUE.

The Issue was made through the 100% Book Building Process wherein up to 50% of the Net Issue to the public shall 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 remainder of the QIB Portion shall be available for allocation on a proportionate basis to all Qualified Institutional Buyers, including Mutual Funds, subject to valid Bids being received at or above Issue Price. Further, at least 15% of the Net Issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and at least 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 32586 applications for 17626480 equity shares resulting in 2.03 times subscription. The details of the application received in the Issue from Retail Individual Bidders, Non Institutional Investors, Qualified Institutional Buyers and Employees 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 19, 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. 81 per Equity Share, was finalized in consultation with NSE. The category was subscribed 3.31976 times. The total number of shares allotted in this category is 3670052 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. 81 per Equity Share, was finalized in consultation with NSE. The category was subscribed 1.08860 times. The total number of shares allotted in this category is 1572868 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 in consultation with NSE. The category was subscribed to the extend of 0.73588 times. Hence, FULL and FIRM Allotment have been made against valid application. The unsubscribed portion of 1095420 equity shares was added to the Retail & Non-institutional Categories.

D) Allocation to Employees:

The Basis of Allocation to the Employees category, who have bid at cut-off or at the Issue Price of Rs. 81 per Equity Share, was finalized in consultation with NSE. The category was subscribed to the extent of 1.01660 times. The total number of Equity Shares allotted in this category is 400000 Equity Shares.

The Board of Directors of Godawari Power and Ispat Limited at its Meeting held at Raipur on April 20, 2006 has approved the basis of allocation of shares and allotted the shares to various successful applicants.

The despatch of Refund Orders/ Advice has been completed by April 21, 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 21, 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 No. of the Application form, number of shares applied for and the name of the Bank branch where the application was lodged at the following 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: godawaripower@intimespectrum.com