Zenith Birla announces public offer

Mumbai, 9th Oct 2006 - Zenith Birla (India) Ltd (BSE Code: 531845), a Yash Birla Group company announced its "Follow on Public Offer" of 2, 38, 18,182 Equity Shares of face value Rs. 10/- each for cash at a premium of Rs. 45/- per share (i.e. at a price of Rs. 55/- per share) aggregating to Rs. 13,100 lakhs.

This offer also compromises of the promoters contribution of 45,45,455 equity shares of face value of.Rs.10/- each at a price of Rs. 55/- for cash aggregating to Rs. 2500 lacs including 19,27,272 equity shares which are reserved for employees and directors; 19,27,272 equity shares are reserved for existing shareholders; 19,27,272 equity shares are reserved for shareholders of group companies; 19,27,273 equity shares are reserved for NRIs and FIIs and 19,27,273 equity shares are reserved for banks/mutual funds/Indian financial institutions.

The net offer to the public is of 96,36,365 equity shares of Rs.10/- each at a price of Rs. 55/- for cash aggregating to Rs. 5300 lacs. The issue would constitute 59% of post issue paid up capital of the company. The issue price of Rs. 55/- is 5.5 times of the face value.

The capital raised from the issue will be deployed to set up additional facilities for manufacturing Mechanical tubes. Some of the funds generated will be used for working capital of the existing business & margin money for the Mechanical tube business.

About Zenith Birla (India) Ltd

Zenith Birla (India) Ltd. is a multi-product organization manufacturing Steel Pipes & Machine Tools and has a turnover of Rs. 320 crore. The Company has plants in Khopoli, Aurangabad and Nashik. The Company has more than 45 years of operations in this field and pioneered the industry's export endeavors.

About Yash Birla Group

The Yash Birla Group, one of the India's leading industrial groups, currently has an annual turnover of Rs 2300 crore. The Group has diversified interest in industries like steel pipes, machine tools, cutting tools, tool holders, iron castings, generators, inverters, multipurpose engines, pumps, viscose staple fibre, textiles, carpets, lifestyle, edutainment, publication & property development. The major group companies are Zenith Birla (India) Ltd, Birla Power Solutions Ltd, 3M India Ltd., Birla Kennametal Ltd, Dagger Forst Tools Ltd, Birla Transasia Carpets Ltd, Birla Perucchini Ltd, Birla Electicals Ltd, Shloka Infotech Ltd & Shloka Publications Ltd