Pipavav Shipyard Limited

(The Company was incorporated as Pipavav Ship Dismantling and Engineering Limited on October 17,1997 under the Companies Act, 1956, as amended (the "Companies Act"). Pursuant to a special resolution of the shareholders of the Company at an extraordinary general meeting held on April 19, 2005, the name of the Company was changed to Pipavav Shipyard Limited. The fresh certificate of incorporation to reflect the new name was issued on April 29, 2005 by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli, located at Ahmedabad (the "ROC"). For details of change in name and registered office, see the section "History and Certain Corporate matters" beginning on page 104 of the Prospectus.)

Registered Office: Pipavav Port, Post Ucchaya, Via Rajula, Rajula - 365 560, Gujarat, India.
Corporate Office: SKIL House, 209 Bank Street Cross Lane, Fort, Mumbai - 400 023, Maharashtra, India, www.pipavavshipyard.com

PUBLIC ISSUE OF 85,450,225 EQUITY SHARES OF RS.10 EACH ("EQUITY SHARES") OF PIPAVAV SHIPYARD LIMITED (THE "COMPANY" OR THE "ISSUER") FOR CASH AT THE ISSUE PRICE OF RS.58 PER EQUITY SHARE FOR THE INVESTORS OTHER THAN THE ANCHOR INVESTORS AND AT THE ISSUE PRICE OF RS.60 PER EQUITY SHARE FOR THE ANCHOR INVESTORS, AGGREGATING RS.4,986.66 MILLION (THE "ISSUE"). THE ISSUE WILL CONSTITUTE 12.83% OF THE POST-ISSUE EQUITY SHARE CAPITAL OF THE COMPANY. UP TO 600,000 EQUITY SHARES OF RS.10 EACH WILL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY EMPLOYEES (AS SPECIFICALLY DEFINED HEREIN IN THE SECTION "DEFINITIONS AND ABBREVIATIONS") AT THE ISSUE PRICE (THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION SHALL BE HEREINAFTER REFERRED TO AS THE "NET ISSUE". THE NET ISSUE WILL CONSTITUTE 12.74% OF THE POST-ISSUE EQUITY SHARE CAPITAL OF THE COMPANY.

The Issue is made through the 100% Book Building Process wherein at least 60% of the net issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was to be specifically allotted to mutual funds), further, up to 10% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% of the Issue shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price. The QIB portion includes the Anchor Investor portion and the Company has allocated 15,272,950 Equity Shares to the Anchor Investors in accordance with the SEBI Regulations.

The Issue received 90,406 applications for 587,307,567 Equity Shares resulting in 6.87 times subscription. The details of the applications received in the Issue from QIBs, Non-Institutional and Retail Individual Investors categories and Employees are as under: (Before technical rejections)

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

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited ("NSE") on October 01, 2009.

A. Employees (After Technical Rejections)
The Basis of Allocation to the Eligible Employees of the Company, who have bid at cut-off price where applicable or at the Issue Price of Rs. 58/- per Equity Share or above, was finalized in consultation with NSE. The total number of Equity Shares allotted in this category is 546,040. The under-subscribed portion of 53,960 Equity Shares has been spilled over to QIB, Non-Institutional and Retail Individual Investor categories in the ratio of 60:10:30.

B. Allocation to Retail Individual Investors (Including ASBA Applications) (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 58/- per Equity Share or above, was finalized in consultation with NSE. This category has been over-subscribed to the extent of 2.74 times. Overall 88,658 applications for 69,684,890 Equity Shares were found valid and they were considered for allotment. The above includes 13,391 valid applications for 7,485,060 equity shares made under the ASBA process. The total number of shares allotted in Retail Individual Investor category is 25,471,256 Equity Shares (including spill over of 16,188 equity shares being 30% of the unsubscribed portion of the employee reservation) to 72,175 applicants. The category-wise details of the Basis of Allocation are as under:

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs.58/- per Equity Share or above, was finalized in consultation with NSE. This category has been over-subscribed to the extent of 14.38 times. Overall 186 applications for 122,086,690 equity shares were found valid and they were considered for allotment. The total number of equity shares allotted in this category is 8,490,418 (including spill over of 5,396 equity shares being 10% of the unsubscribed portion of the employee reservation) to 186 applicants. The category-wise details of the Basis of Allocation (sample) are as under:

D. Allocation to QIBs (After Technical Rejections)
The Basis of Allocation to the Qualified Institutional Investors, who have bid at the Issue Price of Rs.58/- per Equity Share or above, was finalized in consultation with NSE. Overall 42 applications for 377,039,362 Equity Shares were found valid and they were considered for allotment. 32,376 Equity Shares being 60% of the unsubscribed portion of the employee reservation were added to the QIB category. Allocation to QIBs has been done on a proportionate basis in consultation with NSE. Mutual Funds were initially allotted 5% of the quantum of shares available i.e. 1,783,478 and other QIBs and balance demand of Mutual Funds were Allotted the remaining available shares i.e. 33,886,083.

E. Anchor Investors

The Company allotted 15,272,950 equity shares to 6 Anchor Investors in consultation with the Lead Managers. This represents up to 30% of the portion earmarked for allotment to Qualified Institutional Investors.

The Committee of the Board of Directors of the Company at its meeting held on 01.10.2009 has approved the basis of allocation of Equity Shares of the Issue and has allotted the Shares to various successful applicants.

The CAN-cum-Refund Orders and Refund credit advice have been dispatched 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 over-printed with the Bank Account details as registered, if any, with the depositories. The Equity Shares allocated to successful applicants have been 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 the National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation i.e., on or before October 13, 2009.

All future correspondences 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 Equity 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:

Karvy Computershare Private Limited
Unit: PIPAVAV SHIPYARD LIMITED
Plot No. 17 to 24, Vitharao Nagar, Hitech City Road, Madhapur, Hyderabad - 500081, Fax: 040-23420814
Email: [email protected]

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF PIPAVAV SHIPYARD LIMITED.