Apeejay Tea - Exit / Discovered price on Delisting Offer

IL&FS Investsmart Securities Ltd ("Manager to the Offer") on behalf of Apeejay House Pvt Ltd ("Acquirer") has issued this Public Announcement ("PA") dated December 10, 2007 to the equity shareholders of Apeejay Tea Ltd ("Target Company") which is in continuation of and should be read in conjunction with the PA dated September 10, 2007 for delisting of equity shares of Target Company, pursuant to the Securities and Exchange Board of India (Delisting of Securities) Guidelines, 2003 ("the Delisting Guidelines" / "Guidelines") ("the Delisting Offer"), wherein the Acquirer had made the PA on September 10, 2007 to acquire upto 15,43,550 Equity Shares of Rs 10/- each ("Equity Shares") representing 25.73% of the fully paid-up Equity Share Capital of Target Company from the shareholders other than the Promoters ("Public Shareholders") with the purpose of delisting the Equity Shares of Target Company from the Bombay Stock Exchange Ltd ("BSE") at Floor Price of Rs 85.70 per share. The Bid Opening Date was October 01, 2007 and Bid Closing Date was October 05, 2007.

In this regard:

The Acquirer invited Equity Shareholders of the Company to tender their Equity Shares to the Acquirer pursuant to a Delisting Offer made through Reverse Book Building process using electronic facility of Bombay Stock Exchange Ltd (the "Delisting Offer"). The Delisting Offer which was conducted in accordance with the Securities and Exchange Board of India (Delisting of Securities) Guidelines, 2003 (the "Delisting Guidelines"), was successful. The price paid by the Acquirer for the Equity Shares, as established by the Reverse Book Building process, was Rs 103/- per Equity Share (the "Exit Price").

Following the above acquisition and in accordance with the Delisting Guidelines, the Acquirer applied to Bombay Stock Exchange Ltd ("BSE") on which the Equity Shares of the Company were listed, to delist the Equity Shares of the Company.

The Company had already applied for Delisting of Equity Shares from Calcutta Stock Exchange ("CSE") on May 05, 2004. The said application has been pending disposal from CSE.

Upon delisting of the Equity Shares of the Company from BSE and CSE, the shareholders of the Company will not be able to trade their Equity Shares on BSE & CSE. In accordance with the Delisting Guidelines, the remaining shareholders of the Company who did not or were unable to participate in the Delisting Offer, or who unsuccessfully tendered their Equity Shares in the Delisting Offer, will have a further opportunity to tender their Equity Shares to the Acquirer at the Exit Price at any time up to and including June 14, 2008.