VISHAL RETAIL LIMITED

(We were incorporated as Vishal Retail Private Limited on July 23, 2001. Our status was Subsequently changed to a public limited company and the word "private" has been deleted from the name of our company by a special resolution of the members at the extra ordinary general meeting held on November 28,2005.The fresh certificate of incorporation consequent on change of name was granted to our Company on February 20, 2006 by the Registrar of Companies, West Bengal)
Registered Office: RZ-A-95 & 96, Road No 4, Street No.9, Mahipalpur Extension, New Delhi - 110037, India
Corporate Office: Khasra No. 332, Near Telco Workshop, Rangpuri, New Delhi, 110 037.
Tel: + 91 11 32431314 Fax:. +91 11 26784281.
Contact Person: Mr. Arun Gupta;
E-mail: vishalipo@vrpl.com; Website: www.vishalmegamart.net

BASIS OF ALLOTMENT

PUBLIC ISSUE OF  4,074,074("EQUITY SHARES") FOR CASH AT A PRICE OF Rs. 270 PER EQUITY SHARE AGGREGATING Rs. 1,100 MILLION ("ISSUE"), BY VISHAL RETAIL LIMITED ("VISHAL', "COMPANY" OR "ISSUER"). 300,000 EQUITY SHARES WILL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY EMPLOYEES, ("EMPLOYEES RESERVATION PORTION"). THE OFFER OF EQUITY SHARES OTHER THAN THE EMPLOYEE RESERVATION PORTION SHALL BE CALLED THE "NET ISSUE". THE NET ISSUE SHALL CONSTITUTE 16.85% OF THE FULLY DILUTED POST-ISSUE CAPITAL OF OUR COMPANY.
ISSUE PRICE: Rs. 270 PER EQUITY SHARE OF FACE VALUE Rs. 10/-
THE ISSUE PRICE IS 27 TIMES OF THE FACE VALUE.
In terms of Rule 19 (2) (b) of the SCRR, this being an Issue for less than 25% of the post - Issue capital, the Issue is being made through the 100% Book Building Process wherein at least 60% 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 60% of the Net Issue cannot be allotted to QIBs, then the entire application money will be refunded. Further, not less than 10% of the Net lssue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% 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 300,000 Equity Shares will be traded after listing. We have not opted for a grading ol this Issue from any credit rating agency.
The Bid/Offer opened on June 11,2007 and Closed on June 13,2007. the Issue received 310915 applications for 310109750 equity shares resulting in 76.12 times subscription
The Basis of Allotment for all the categories namely Retail Individual Investors, Non Institutional Investors and Qualified Institutional Buyers was approved by the Bombay Stock Exchange of India Limited (Designated Stock Exchange) on June 25,2007. The Board of Directors of the Company at its Meeting held at New Delhi, on June 26,2007, allotted the Equity Shares to the successful applicants. Details of valid applications received and allotments done are as under:

PUBLIC ISSUE

3 excess equity shares have been allotted in Retail category due to rounding off.

Final Demand
The final demand at different bid prices is as under:

The Basis of Allotment was finalised In consultation with the Designated Stock Exchange- Bombay Stock Exchange of India Limited ("BSE") on Monday June 25,2007.

A. Allotment to Retail Investors (Alter Technical Rejections)
All the bidders in the Retail Investors, who have bid at cut-off or at the Issue Price of Rs. 270/- per Equity Share, have been considered while preparing the basis of allotment. The category was over subscribed 58.027 times. The total number of shares allotted in this category is 1132225 Equity Shares. The category-wise details of the Basis of allotment are as under:

B. Allotment to Non Institutional Investors (After Technical Rejections)
All the bidders in the Non Institutional Investors, who have bid at the Issue Price of Rs. 270/- per Equity Share, have been considered while preparing the basis of allotment. The category was over subscribed 316.4633 times. The total number of shares allotted in this category is 377405 Equity Shares. The category-wise details of the Basis of allotment are as under: (Sample)

C. Allotment to QIBs
The total numbers of Equity Shares allotted in this category are 2264444 Equity Shares (60% of Equity Shares available excluding Employee Reservation). Out of 2264444 Equity Shares offered to QIBs as per the terms of the Issue, 113222 Equity Shares (i.e. 5% of 2264444 Equity Shares) has been allotted proportionately to mutual funds. Mutual funds applicants have also been considered eligible for proportionate allotment for the balance Equity shares In QIBs category i.e. 2151222. The category was over subscribed 54.15 times. The category-wise details of the Basis of allotment are as under:

The Board of Directors of the Company at a meeting held at New Delhi on June 26,2007 adopted the Basis of Allotment of Equity Shares in the Issue, approved by BSE and allotted 4074074 Equity Shares to the successful applicants.
The dispatch of refund orders and the dispatch of allotment advices Is completed on June 27,2007. The Company had filed the listing application with the Bombay Stock Exchange Limited and National Stock Exchange of India Limited on June 27,2007.
The Refund Orders / allotment advice in respect of refunds 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 the Registrar to the Issue 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 allocated to the successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is taking steps to get the Equity Shares admitted for trading on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of Basis of Allotment.

INVESTOR PLEASE NOTE
This details of the allotment made would be hosted on the website ol 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 Fax: +91 22 2596 0328/29
E-mail:vishalipo@intimespectrum.com, Website: www.intimespeotrum.com
Contact Person: Mr. Sachin Achar

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 VISHAL RETAIL LIMITED.