Basis of Allotment
CINEMAX INDIA LIMITED

CINEMAX INDIA LIMITED

(Originally incorporated on May 22,2002 as Cineline Entertainment (India) Private Limited under the Companies Act, 1956. Our company name was changed to Cinemax Cinemas (India) Private Limited on December 23, 2005. Our Company was subsequently converted to a public limited company and the name was changed to Cinemax India Limited on June 12,2006.)

Corporate and registered office: 805,8th Floor, 349 Business Point, Western Express Highway, Andheri (East),
Mumbai 400 069.
Tel: +91 22 6710 1991-95 Fax: +91 22 2684 5337/6677 8321

Contact Person: Mr. Amit Shah, Company Secretary. E-mail: investor@cinemax.co.in, Website: www.cinemax.co.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 8,920,000 EQUITY SHARES OF Rs. 10 EACH ("EQUITY SHARES") FOR CASH AT A PRICE OF RS. 155 PER EQUITY SHARE AGGREGATING RS. 1382.60 MILLION, COMPRISING OF A FRESH ISSUE OF 7,000,000 EQUITY SHARES BY CINEMAX INDIA LIMITED ("CIL", "COMPANY" OR "ISSUER") AND AN OFFER FOR SALE OF 1,920,000 EQUITY SHARES BY THE SELLING SHAREHOLDERS. THE FRESH ISSUE AND THE OFFER FOR SALE ARE JOINTLY REFERRED TO AS THE "ISSUE". 60,000 EQUITY SHARES OF RS. 10 EACH WILL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY EMPLOYEES (AS DEFINED HEREIN), (THE "EMPLOYEE RESERVATION PORTION"). THE OFFER OF EQUITY SHARES OTHER THAN THE EMPLOYEE RESERVATION PORTION SHALL BE CALLED THE "NET ISSUE". THE ISSUE WILL CONSTITUTE 31.86% OF THE FULLY DILUTED EQUITY SHARE CAPITAL OF OUR COMPANY. THE NET ISSUE WILL CONSTITUTE 31.64% OF THE FULLY DILUTED EQUITY SHARE CAPITAL OF OUR COMPANY.

The Book Running Lead Managers are Enam Financial Consultants Private Limited, JM Morgan Stanley Private Limited,, Edelweiss Capital Limited, and Ambit Corporate Finance Private Limited. The Equity Shares of the Company are proposed to be listed on The Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited ("NSE") and trading is expected to start on or around February 15,2007. The Issue is being made through the 100% Book Building Process wherein atleast 50% of the Net Issue shall be allotted on a proportionate basis to Qualified Institutional Buyers ("QIBs"). 5% of the QIB Portion shall be available for allocation to Mutual Funds only and the remaining QIB Portion shall be available for allocation to the QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. If at least 50% of the Net Issue cannot be allotted to QIBs, then the entire application money will be refunded. Further, upto 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and upto 35% of the Net Issue 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. Further, up to 60,000 Equity Shares shall be available for allocation on a proportionate basis to the Employees, subject to valid Bids being received at or above the Issue Price. The Company has not opted for grading of the Issue. The issue received 146,336 applications for 373,384,305 Equity Shares resulting in 41.86 times subscription. The details of the applications received in the Issue from QIBs, Non Institutional Bidders, Retail Individual Bidders and Eligible Employees (Before technical rejections) are as under:

Category No. Of Applications No. of Shares Subscription(No.of times)
Retail Individual Bidders 145662 47878020 15.4395
Non Institutional Bidders 422 56892420 42.8084
QIBs 210 268549785 60.6207
Eligible Employees 42 64080 1.068

Final Demand

A summary of the final demand at various price levels as per the electronic book is given below:

Bid Price No. of Applications No. of Shares % to Total Cumulative no of Shares Cumulative % to Total
135 921 5601375 1.4180 395023140 100.0000
136 17 11835 0.0030 389421765 98.5820
137 7 495 0.0001 389409930 98.5790
138 77 42750 0.0108 389409435 98.5789
139 7 2025 0.0005 389366685 98.5681
140 140 27720 0.0070 389364660 98.5676
141 5 1530 0.0004 389336940 98.5605
142 8 1530 0.0004 389335410 98.5602
143 3 675 0.0002 389333880 98.5598
144 335 222750 0.0564 389333205 98.5596
145 360 12427965 3.1461 389110455 98.5032
146 8 1125 0.0003 376682490 95.3571
147 8 2475 0.0006 376681365 95.3568
148 59 35820 0.0091 376678890 95.3562
149 4 900 0.0002 376643070 95.3471
150 110 1306890 0.3308 376642170 95.3469
151 4 225 0.0001 375335280 95.0160
152 5 765 0.0002 375335055 95.0160
153 10 855 0.0002 375334290 95.0158
154 6 1260 0.0003 375333435 95.0156
155 8581 329243850 83.3480 375332175 95.0152
Cut-Off 140000 46088325 11.6672 46088325 11.6672
Total 150675 395023140 100.0000

The Basis of Allocation was finalized in consulting with the National Stock Exchange ("NSE") on February 6,2007. The IPO Committee of Directors of the Company at its meeting held on February 7,2007 approved the Basis of Allocation of Equity Shares in the Issue and has allotted equity Shares to various successful applicants.

A) Allocation to Non Institutional Bidders:
This category (net of technical rejections) was over subscribed 42.19 times. The total number of shares allotted in this category is 1328960 Equity Shares. The category wise details of the Basis of Allocation in this category are as under (sample):

Category No. of applications % to total No. of Equity Shares applied % to total No. of Equity Shares allocated Ratio Total no. of Equity Shares allocated
675 22 5.8 14850 0.03 45 4:11 360
720 4 1.06 2880 0.01 45 1:2 90
765 3 0.79 2295 0 45 1:3 45
810 2 0.53 1620 0 45 1:2 45
900 8 2.11 7200 0.01 45 1:2 180
990 13 3.43 12870 0.02 45 7:13 315
1035 2 0.53 2070 0 45 1:2 45
1260 3 0.79 3780 0.01 45 2:3 90
1305 5 1.32 6525 0.01 45 3:5 135
1350 2 0.53 2700 0 45 1:2 45
101250 1 0.26 101250 0.18 2400 FIRM 2400
577440 1 0.26 577440 1.03 13686 FIRM 13686
1028700 1 0.26 1028700 1.83 24381 FIRM 24381
8859960 1 0.26 8859960 15.8 209924 FIRM 209924

B) Allocation to Retail Individual Bidders: This category (net of technical rejections) was over subscribed 15.22 times. The total number of shares allotted in this category is 3101040 Equity Shares. The category wise details of the Basis of Allocation in this category are as under:

Category No. of applications % to total No. of Equity Shares applied % to total No. of Equity Shares allocated Ratio Total no. of Equity Shares allocated
45 19314 13.46 869130 1.84 45 5:76 57195
90 15826 11.03 1424340 3.02 45 5:38 93690
135 9845 6.86 1329075 2.82 45 15:76 87435
180 9791 6.82 1762380 3.73 45 13:50 114570
225 5001 3.48 1125225 2.38 45 25:76 74025
270 4240 2.95 1144800 2.43 45 15:38 75330
315 29048 20.24 9150120 19.38 45 23:50 601290
360 2623 1.83 944280 2 45 10:19 62145
405 878 0.61 355590 0.75 45 59:100 23310
450 1653 1.15 743850 1.58 45 25:36 48960
495 680 0.47 336600 0.71 45 18:25 22050
540 756 0.53 408240 0.86 45 15:19 26865
585 726 0.51 424710 0.9 45 17:20 27765
630 43152 30.06 27185760 57.59 45 23:25 1786410

C) Allocation to Eligible Employees: This category (net of technical rejections) was over subscribed 1.07 times. The total number of shares allotted in this category is 60000 Equity Shares. The category wise details of the Basis of Allocation in this category are as under (Sample):

Category No. Of  applications % to total No. of Equity Shares applied % to total No. of Equity Shares allocated Ratio Total no. of Equity Shares allocated
45 2 4.76 90 0.14 45 FIRM 90
1125 1 2.38 1125 1.76 1053 FIRM 1053
2115 1 2.38 2115 3.3 1980 FIRM 1980
2925 1 2.38 2925 4.56 2739 FIRM 2739
3915 1 2.38 3915 6.11 3666 FIRM 3666
4680 1 2.38 4680 7.3 4382 FIRM 4382
6525 1 2.38 6525 10.18 6110 FIRM 6110
7920 1 2.38 7920 12.36 7416 FIRM 7416
8550 1 2.38 8550 13.34 8007 FIRM 8007

D) Allocation to Qualified Institutional Buyers:

Category Financial
Institutional/Banks		 Mutual
Funds		 Foreign Institutional
Investors/		 Insurance
Companies		 VCs
Total Foreign Banks
4430000 969076 815997 2330534 305255 9138

The Refund Orders due to applicants will be dispatched to the address of the Investors as registered with the depositories on February 8,2007. 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 Equity Shares allotted to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned on February 7,2007. The listing applications will be filed with the BSE and NSE on February 8,2007 and the Company is taking steps to get the Equity Shares admitted fortrading on the BSE and NSE within seven working days from the date of approval of the Basis of Allocation. Investors Please Note: The details of allocation made would be hosted on the website of the Registrar to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com Further correspondence in respect of allotment of Equity Shares pertaining to the Issue may be addressed to the Registrar to the Issue, Intime Spectrum Registry Limited, quoting full name of the First/ Sole Applicant, Serial Number of the Bid cum Application Form, Number of Equity shares bid for, Name of the Member of the Syndicate, Place where the bid was submitted and payment details at the address given below:

Intime Spectrum Registry Limited: C-13, Pannalal Silk Mills Compound, L.B.S Marg, Bhandup West,
Mumbai 400 078., Tel: + 91 22 2596 0320. Fax: + 91 22 2596 0329, Email: cinemaxipo@intimespectrum.com, Website:www.intimespectrum.com,
Contact Person: Mr. Salim Shaikh

Place : Mumbai
Date : February 7, 2007

For Cinemax India Limited
On Behalf of the Board of Directors
Sd/-
Authorized Signatory
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 CINEMAX INDIA LIMITED.
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