CMYK RED HERRING PROSPECTUS Dated February 24, 2006 Please read Section 60B of the SOLAR Companies Act, 1956 EXPLOSIVES 100% Book Built Issue LIMITED (Incorporated on February 24, 1995 under the Companies Act, 1956 as a limited liability company. The registered office of our company was changed from Dhakate Building, Fawara Chowk, Gandhi Bagh, Nagpur- 440 002, to its current address 11, Zade Layout, Bharat Nagar, Nagpur – 440 033 with effect from June 10, 2004) Registered and Corporate Office: 11, Zade Layout, Bharat Nagar, Nagpur – 440 033, Maharashtra, India Tel: (+91 712) 256 1000 Fax: (+91 712) 256 0202; e-mail:
[email protected], Website: www.solarexplosives.com Compliance Officer: Mr. Nilesh Panpaliya, e-mail:
[email protected] PUBLIC ISSUE OF 44,00,000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. [] PER EQUITY SHARE AGGREGATING TO RS. [] LAKHS (HEREINAFTER REFERRED TO AS “THE ISSUE”) BY SOLAR EXPLOSIVES LIMITED (“THE COMPANY” OR “THE ISSUER”). THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 EACH. THE ISSUE INCLUDES A RESERVATION OF 60,000 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES OF THE COMPANY. THE NET ISSUE TO THE PUBLIC SHALL BE 43,40,000 EQUITY SHARES. THE NET ISSUE WOULD CONSTITUTE 25.05% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY. PRICE BAND: RS. 170/- TO RS. 190/- PER EQUITY SHARE OF FACE VALUE RS. 10/- EACH. ISSUE PRICE IS 17 TIMES THE FACE VALUE AT THE LOWER END OF PRICE BAND AND 19 TIMES THE FACE VALUE AT THE UPPER END OF PRICE BAND The Issue is being made through the 100% Book Building process wherein up to 50% of the Issue shall be allocated to Qualified Institutional Buyers (“QIBs”) on a proportionate basis.