NITCO IPO to open on February 22

Company News

New Delhi, February 16

NITCO Tiles Ltd will enter the capital market on February 22, 2006, with its initial public offering of 10,000,000 equity shares of Rs. 10 each for cash, at a price to be determined through a 100% book building process. The issue will remain open till February 27, 2006. The price band for the issue has been fixed at Rs.140 to Rs. 168.

Out of the net offer to public, up to 50% has been reserved for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs) (including 5% specifically kept for allocation to Mutual Funds). Further, up to 15% of the net issue to the public will be available for proportionate allocation to non-institutional investors and not less than 35% will be available for allocation to retail investors on a proportionate basis. 1,000,000 equity shares have also been reserved in the Issue for the employees of the company.

The company intends to deploy the net proceeds from the issue of shares to expand its existing manufacturing facilities of ceramic floor tiles and enter into wall tiles segment by acquiring an existing wall tile manufacturing unit/s or by setting up a greenfield manufacturing facility. It also plans to install windmills with a view to reduce power costs.

Speaking on the occasion, Mr Vivek Talwar, Managing Director, NITCO Tiles, said “Our issue proceeds will help us to consolidate our positioning in the industry as we expand our existing manufacturing facilities and plan to enter wall tiles segment by setting up a greenfield project or exploring acquisitions. We also plan to install windmills with a view to reduce power costs.”

The company has appointed UTI Bank Ltd, IL & FS Investsmart Ltd and Karvy Investor Services Ltd as the Book Running Lead Managers for the public issue.

For further information, please contact:

Mr. B.G. Borkar Mr. Rajiv Naidu/ Sasikumar R

CFO & Company Secretary Adfactors PR

NITCO Tiles Ltd. Tel : 022 22813565

Tel : 022 55521508 rajiv@adfactorspr.com

bgborkar@nitcotiles.com Sasikumar.ramanathar@adfactorspr.com