Schedule - 14 - Illustration explaining the procedure of allotment for retail individual investors [See regulation 47(3), 49(5), 145(5), 192(1)(a), 204(4), 267(3), 143(3) and 268(5)] - Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018

SCHEDULE XIV - ILLUSTRATION EXPLAINING THE PROCEDURE OF ALLOTMENT [See regulation 47(3), 49(5), 145(5), 192(1)(a), 204(4), 267(3), 143(3) and 268(5)] Part A - Illustration explaining the procedure of allotment 1 [for retail individual investors] 3 [ For the purpose of public issue by an issuer to be listed /listed on SME exchange made in accordance with Chapter IX to these regulations, the words retail individual investors shall be read as words individual investors who applies for minimum application size . ] Example A. (1) Total number of specified securities on offer@ Rs. 600 per share: 1 crore specified securities. (2) Specified securities on offer for retail individual investors category: 35 lakh specified securities. (3) The issue is over-all subscribed by 2.5 times, whereas the retail individual investors category is oversubscribed 4 times. (4) The issuer has fixed the minimum application/bid size as 20 specified securities (falling within the range of ten thousand to fifteen thousand rupees) and in multiples thereof. (5) A total of one lakh retail individual investors have applied in the issue, in varying number of bid lots i.e. between 1 16 bid lots, based on the maximum application size of up to two lakh rupees. (6) Out of the one lakh investors, there are five retail individual investors A, B, C, D and E who have applied as follows: A has applied for 320 specified securities. B has applied for 220 specified securities. C has applied for 120 specified securities. D has applied for 60 specified securities and E has applied for 20 specified securities. (7) As the allotment to a retail individual investor cannot be less than the minimum bid lot, subject to availability of shares, the remaining available shares, if any, shall be allotted on a proportionate basis. The actual entitlement shall be as follows: Sr. No. Name of Investor Total Number of specified securities applied for Total number of specified securities eligible to be allotted 1 A 320 20 specified securities (i.e. the minimum bid lot) + 38 specified securities [{35,00,000 - (1,00,000 * 20)} / {140,00,000 - (1,00,000 * 20)}] * 300 (i.e. 320-20) 2 B 220 20 specified securities (i.e. the minimum bid lot) + 25 specified securities [{35,00,000 - (1,00,000 * 20) /{140,00,000 - (1,00,000 * 20)}] * 200 (i.e. 220-20) 3 C 120 20 specified securities (i.e. the minimum bid lot) + 13 specified securities [{35,00,000 - (1,00,000 * 20)} / {(140,00,000 - (1,00,000 * 20)}] * 100 (i.e. 120-20) 4 D 60 20 specified securities (i.e. the minimum bid lot) + 5 specified securities [{(35,00,000 - 1,00,000 * 20)} / {(140,00,000 - (1,00,000 * 20)}] * 40 (i.e. 60-20) 5 E 20 20 specified securities (i.e. the minimum bid lot) Example B. (1) Total number of specified securities on offer @ Rs. 600 per share: 1 crore specified securities. (2) Specified securities on offer for retail individual investors category: 35 lakh specified securities. (3) The issue is overall subscribed by 7 times, whereas the retail individual investors category is over-subscribed 9.37 times. (4) The issuer has decided the minimum application/bid size as 20 specified securities (falling within the range of ten thousand to fifteen thousand rupees) and in multiples thereof. (5) A total of two lakh retail individual investors have applied in the issue, in varying number of bid lots i.e. between 1-16 bid lots, based on the maximum application size of up to two lakh rupees. (6) As per the allotment procedure, the allotment to retail individual investors shall not be less than the minimum bid lot, subject to availability of shares. (7) Since the total number of shares on offer to the retail individual investors is 35,00,000 and the minimum bid lot is 20 shares, the maximum number of investors who can be allotted this minimum bid lot should be 1,75,000. In other words, 1,75,000 retail applicants shall get the minimum bid lot and the remaining 25,000 retail applicants will not get any allotment. The details of the allotment shall be as follows: No. of lots No. of shares at each lot No. of retail investors applying at each lot Total no. of shares applied for at each lot No. of investors who shall receive minimum bid-lot (to be selected by a lottery) A B C D= (B*C) E 1 20 10,000 2,00,000 8,750 = (1,75,000/2,00,000)*10,000 2 40 10,000 4,00,000 8,750 3 60 10,000 6,00,000 8,750 4 80 10,000 8,00,000 8,750 5 100 20,000 20,00,000 17,500 6 120 20,000 24,00,000 17,500 7 140 15,000 21,00,000 13,125 8 160 20,000 32,00,000 17,500 9 180 10,000 18,00,000 8,750 10 200 15,000 30,00,000 13,125 11 220 10,000 22,00,000 8,750 12 240 10,000 24,00,000 8,750 13 260 10,000 26,00,000 8,750 14 280 5,000 14,00,000 4,375 15 300 15,000 45,00,000 13,125 16 320 10,000 32,00,000 8,750 Total 2,00,000 328,00,000 1,75,000 Note : For IDRs, the minimum application size shall be twenty thousand rupees. 2 [ Part A1 - Illustration explaining the procedure of allotment for non-institutional investors Example A. (1) Total number of specified securities on offer @Rs. 600 per share: 1 crore specified securities. (2) Specified securities on offer for non-institutional investors category: 15 lakhs specified securities. (3) Out of the total non-institutional investors category, (a) Reserved for applications above two lakhs rupees and up to ten lakhs rupees -i.e., five lakhs of specified securities (b) Balance for applications above ten lakhs rupees - ten lakhs specified securities (4) The issue is over-all subscribed by 2.5 times, whereas the non-institutional investors category mentioned in 3 (a) above is oversubscribed 4 times and 3(b) is oversubscribed 50 times. (5) The issuer has fixed the minimum lot size as 20 specified securities (falling within the range of ten thousand to fifteen thousand rupees) and in multiples thereof. (6) Therefore, the minimum application size for non-institutional investors is 340 specified securities (i.e. the application value should be more than two lakh rupees and in multiples of one lot (i.e. 20 specified securities) thereof. (7) A total of five hundred investors have applied in the issue under 3(a) category, in varying number of application size i.e. between 17 to 83 lots (340 to 1660 specified securities), based on the maximum application size of up to ten lakh rupees. (8) Out of the five hundred investors, there are five non-institutional investors A, B, C, D and E who have applied as follows: A has applied for 340 specified securities. B has applied for 500 specified securities. C has applied for 1,000 specified securities. D has applied for 1,400 specified securities and E has applied for 1,660 specified securities. (9) As the allotment to a non-institutional investor cannot be less than the minimum application size, subject to availability of shares, the remaining available shares, if any, shall be allotted on a proportionate basis. The actual entitlement shall be as follows: Sr . No . Name of Investor Total Number of specified securities applied for Total number of specified securities eligible to be allotted 1 A 340 340 specified securities (i.e. the minimum applications size) 2 B 500 340 specified securities (i.e. the minimum applications size) + 29 specified securities [{5,00,000 - (500 * 340)} / {20,00,000 - (500 * 340)}] * 160 (i.e. 500-340) 3 C 1,000 340 specified securities (i.e. the minimum lot of Rs. 2 Lakhs) + 119 specified securities [{5,00,000 - (500 * 340)} / {20,00,000 - (500* 340)}] * 660 (i.e. 1,000- 340) 4 D 1,400 340 specified securities (i.e. the minimum lot of Rs. 2 Lakhs) + 191 specified securities [{5,00,000 - (500 * 340)} / {20,00,000 - (500 * 340)}] * 1,060 (i.e. 1,400- 340) 5 E 1,660 340 specified securities (i.e. the minimum lot of Rs. 2 Lakhs) + 238 specified securities[{5,00,000 - (500 * 340)} / {20,00,000 - (500 * 340)}] * 1,320 (i.e. 1,660- 340) NOTE: For category 3(b), calculation methodology shall be similar to above. Example B. (1) Total number of specified securities on offer @ Rs. 600 per share: 1 crore specified securities. (2) Specified securities on offer for non-institutional investors category: fifteen lakh specified securities. (3) Out of the total non-institutional investors category, (a) Reserved for applications above two lakhs rupees and up to ten lakhs rupees -i.e., five lakhs of specified securities (b) Balance for applications above ten lakhs rupees - ten lakhs specified securities (4) The issue is overall subscribed by 7 times, whereas the non-institutional investors category, reserved for applications above two lakh rupees and up to ten lakh rupees -i.e., five lakhs of specified securities is oversubscribed 89.17 times. (5) The issuer has fixed the minimum lot size as 20 specified securities (falling within the range of ten thousand to fifteen thousand rupees) and in multiples thereof. (6) Therefore, the minimum application size for non-institutional investors is 340 specified securities (i.e. the application value should be more than two lakh rupees and in multiples of one lot (i.e. 20 specified securities) thereof. (7) A total of fifty thousand investors have applied in the issue under 3(a) category, in varying number of application sizes i.e. between 17 83 lots (340 to 1660 specified securities), based on the maximum application size of up to ten lakh rupees. (8) As per the allotment procedure, the allotment to non-institutional investors shall not be less than the minimum application size, subject to availability of shares. (9) Since the total number of specified securities on offer to the non-institutional investors applications under 3(a) is 5,00,000 and the minimum application size is 340 specified securities, the maximum number of non-institutional investors who can be allotted this minimum application size should be 1,471. In other words, 1,471 applicants shall get the minimum application size and the remaining 48,529 applicants will not get any allotment. The details of the allotment shall be as follows: No . of lots No . of shares at each lot No . of investors applying at each lot Total no . of shares applied for at each lot No . of investors who shall receive lots according to minimum application size ( to be selected by a lottery ) A B C D = ( B * C ) E 17 340 2,500 8,50,000 74= (1,471/50,000) *2,500 18 360 1,000 3,60,000 29 19 380 1,000 3,80,000 29 20 400 1,000 4,00,000 29 21 420 1,000 4,20,000 29 22 440 1,000 4,40,000 29 23 460 1,000 4,60,000 29 24 480 500 2,40,000 15 25 500 500 2,50,000 15 26 520 500 2,60,000 15 27 540 500 2,70,000 15 28 560 1,000 5,60,000 29 29 580 1,000 5,80,000 29 30 600 500 3,00,000 15 31 620 1,000 6,20,000 29 32 640 1,000 6,40,000 29 33 660 1,000 6,60,000 29 34 680 1,000 6,80,000 29 35 700 1,000 7,00,000 29 36 720 500 3,60,000 15 37 740 1,000 7,40,000 29 38 760 1,000 7,60,000 29 39 780 1,000 7,80,000 29 40 800 1,000 8,00,000 29 41 820 1,000 8,20,000 29 42 840 1,000 8,40,000 29 43 860 500 4,30,000 15 44 880 1,000 8,80,000 29 45 900 1,000 9,00,000 29 46 920 1,000 9,20,000 29 47 940 1,000 9,40,000 29 48 960 1,000 9,60,000 29 49 980 1,000 9,80,000 29 50 1000 1,000 10,00,000 29 51 1020 1,000 10,20,000 29 52 1040 1,000 10,40,000 29 53 1060 1,000 10,60,000 29 54 1080 500 5,40,000 15 55 1100 500 5,50,000 15 56 1120 500 5,60,000 15 57 1140 500 5,70,000 15 58 1160 500 5,80,000 15 59 1180 500 5,90,000 15 60 1200 500 6,00,000 15 61 1220 500 6,10,000 15 62 1240 500 6,20,000 15 63 1260 500 6,30,000 15 64 1280 500 6,40,000 15 65 1300 500 6,50,000 15 66 1320 500 6,60,000 15 67 1340 500 6,70,000 15 68 1360 500 6,80,000 15 69 1380 500 6,90,000 15 70 1400 500 7,00,000 15 71 1420 500 7,10,000 15 72 1440 500 7,20,000 15 73 1460 500 7,30,000 15 74 1480 500 7,40,000 15 75 1500 500 7,50,000 15 76 1520 500 7,60,000 15 77 1540 500 7,70,000 15 78 1560 500 7,80,000 15 79 1580 500 7,90,000 15 80 1600 500 8,00,000 15 81 1620 500 8,10,000 15 82 1640 500 8,20,000 15 83 1660 500 8,30,000 15 TOTAL 50,000 4,48,50,000 1,471 NOTE: For applications under category 3(b), calculation methodology shall be similar to above. ] 4 [ Part A2 - Illustration explaining the procedure of allotment for non-institutional investors in case of initial public offer by SME companies. Example A. (1) Total number of specified securities on offer @Rs. 20 per share: 7.2 crore specified securities. (2) Specified securities on offer for non-institutional investors category: 108 lakhs specified securities (with 15% allocation). (3) Out of the total non-institutional investors category, (a) one third is reserved for applications above two lots and up to such lots equivalent to application size not more than ten lakh rupees -i.e. 36 lakhs of specified securities (b) balance two-third is reserved for applications above ten lakh rupees i.e. 72 lakhs of specified securities (4) The issue is over-all subscribed by 2.5 times, whereas the non-institutional investors category mentioned in 3 (a) above is oversubscribed 1.5 times and 3(b) is oversubscribed 3 times. (5) The issuer has fixed the lot size as 6000 specified securities (based on SEBI Circular dated February 21, 2012 Standardized lot size for SME Exchange/ Platform) and in multiples thereof. (6) Therefore, the minimum application size for non-institutional investors is 18,000 specified securities (i.e. the application should be for more than two lots and in multiples of one lot (i.e. 6000 specified securities) thereof). (7) A total of one hundred investors have applied in the issue under 3(a) category, in varying number of application size i.e. between 3 to 8 lots (18,000 to 48,000 specified securities), based on the maximum application size under 3(a) not more than ten lakh rupees (Application size of 8 lots = 8*6000*20 = 9,60,000/-). (8) Out of the one hundred investors, there are five non-institutional investors A, B, C, D and E who have applied as follows: A has applied for 18,000 specified securities. B has applied for 30,000 specified securities. C has applied for 36,000 specified securities. D has applied for 42,000 specified securities and E has applied for 48,000 specified securities. (9) As the allotment to a non-institutional investor cannot be less than the minimum application size in NII category, subject to availability of shares, the remaining available shares, if any, shall be allotted on a proportionate basis. The actual entitlement shall be as follows: Sr. No. Name of Investor Total Number of specified securities applied for Total number of specified securities eligible to be Allotted 1 A 18,000 18,000 specified securities (i.e. the minimum applications size) 2 B 24,000 18,000 specified securities (i.e. the minimum applications size) + 0 specified securities {Since, [{36,00,000 - (100 * 18000)} / {54,00,000 - (100 * 18000)}] * 6000 (i.e. 24,000-18,000) = 3000 securities; which is less than 1 lot, so no additional lot shall be allotted} 3 C 30,000 18,000 specified securities (i.e. the minimum applications size) + 6000 specified securities {Since, [{36,00,000 - (100 * 18000)} / {54,00,000 - (100 * 18000)}] * 12000 (i.e. 30,000-18,000) = 6000 securities} 4 D 42,000 18,000 specified securities (i.e. the minimum applications size) + 12000 specified securities {Since, [{36,00,000 - (100 * 18000)} / {54,00,000 - (100 * 18000)}] * 24000 (i.e. 42,000-18,000) = 12000 securities} 5 E 48,000 18,000 specified securities (i.e. the minimum applications size) + 12000 specified securities {Since, [{36,00,000 - (100 * 18000)} / {54,00,000 - (100 * 18000)}] * 30000 (i.e. 48,000-18,000) = 15000 securities; which is more than 2 lots but less than 3 lots, therefore only 2 lots shall be allotted} NOTE: For category 3(b), calculation methodology shall be similar to above. Example B. (1) Total number of specified securities on offer @Rs. 20 per share: 7.2 crore specified securities. (2) Specified securities on offer for non-institutional investors category: 108 lakhs specified securities (with 15% allocation). (3) Out of the total non-institutional investors category, (a) one third is reserved for applications above two lots and up to such lots equivalent to application size not more than ten lakh rupees -i.e. 36 lakhs of specified securities (b) balance two-third is reserved for applications above ten lakh rupees i.e. 72 lakhs of specified securities (4) The issue is over-all subscribed by 7.16 times, whereas the non-institutional investors category mentioned in 3 (a) above is oversubscribed 15.5 times and 3(b) is oversubscribed 3 times. (5) The issuer has fixed the lot size as 6000 specified securities (based on SEBI Circular dated February 21, 2012 Standardized lot size for SME Exchange/ Platform) and in multiples thereof. (6) Therefore, the minimum application size for non-institutional investors is 18,000 specified securities (i.e. the application should be for more than two lots and in multiples of one lot (i.e. 6000 specified securities) thereof). (7) A total of two thousand investors have applied in the issue under 3(a) category, in varying number of application size i.e. between 3 to 8 lots (18,000 to 48,000 specified securities), based on the maximum application size under 3(a) not more than ten lakh rupees (Application size of 8 lots = 8*6000*20 = 9,60,000/-). (8) As per the allotment procedure, the allotment to non-institutional investors shall not be less than the minimum application size in NII category, subject to availability of shares. (9) Since the total number of specified securities on offer to the non-institutional investors applications under 3(a) is 36,00,000 and the minimum application size is 18,000 specified securities, the maximum number of non-institutional investors who can be allotted this minimum application size should be 200. In other words, 200 applicants shall get the minimum application size (by draw of lots) and the remaining 1800 applicants will not get any allotment. The details of the allotment shall be as follows: No. of lots No. of shares at each lot No. of investors applying at each lot Total no. of shares applied for at each lot No. of investors who shall receive lots according to minimum application size (to be selected by a lottery) A B C D=(B*C) E 3 18,000 600 90,00,000 60= (200/2000) *600 4 24,000 400 96,00,000 40 =(200/2000) *400 5 30,000 300 90,00,000 30 6 36,000 300 1,08,00,000 30 7 42,000 300 1,26,00,000 30 8 48,000 100 48,00,000 10 Total 2000 5,58,00,000 200] Part B - Illustration explaining minimum application size For inviting applications in multiples of the minimum value as referred to in sub-regulation (2) of regulation 49, the procedure is clarified by following example: Assuming an issue is being made at a price of Rs. 900 per equity share. In this case, the issuer in consultation with the lead merchant banker can determine the minimum application lot within the range of 12 16 equity shares (in value terms between Rs. 10,000- Rs. 15,000), as explained hereunder: Options I II III IV V Lot Size @ Rs. 900/- per share 12 shares 13 shares 14 shares 15 shares 16 shares Application / Bid amount for 1 lots 10800 11700 12600 13500 14400 Application / Bid amount for 2 lots 21600 23400 25200 27000 28800 Application / Bid amount for 4 lots 43200 46800 50400 54000 57600 Application / Bid amount for 8 lots 86400 93600 100800 108000 115200 Application / Bid amount for 16 lots 172800 187200 -- -- -- Application / Bid amount for 18 lots 194400 -- -- -- -- The options given above are only illustrative and not exhaustive. Where the issuer in consultation with the lead merchant banker decides to fix the minimum application / bid size as 14 (Option III), necessary disclosures to the effect that the applicant can make an application for 14 shares and in multiples thereof shall be made in the offer document.] ************* NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/ 2022/ 63 dated 14-01-2022 w.e.f. 01-04-2022 or 01-07-2022 (Also see F. No. SEBI/LAD-NRO/GN/2022/82 dated 27-04-2022 ) 2. Inserted vide Notification No. SEBI/LAD-NRO/GN/ 2022/ 63 dated 14-01-2022 w.e.f. 01-04-2022 or 01-07-2022 (Also see F. No. SEBI/LAD-NRO/GN/2022/82 dated 27-04-2022 ) 3. Inserted vide F. No. SEBI/LAD-NRO/GN/2025/233 dated 03-03-2025 w.e.f. 03-03-2025 (For effective date in certain cases see Notification) 4. Inserted vide F. No. SEBI/LAD-NRO/GN/2025/233 dated 03-03-2025 w.e.f. 03-03-2025 (For effective date in certain cases see Notification)