INTELLECT DESIGN ARENA LIMITED — Capital/Financing Update 2021

Oct 29, 2021

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Intellect/SEC/2021-22 29[th] October 2021 1. National Stock Exchange of India Ltd., Scrip Code: Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, INTELLECT Bandra (E), Mumbai – 400 051. 2. BSE Ltd. Scrip Code: 1st Floor, New Trade Ring, Rotunda Building, PJ Towers, 538835 Dalal Street, Fort, Mumbai – 400 001.

Dear Sir/Madam,

Sub: Response to Investor queries regarding Investment in ‘Alternative Investment Fund’

Further to our Earning Announcements investor call on Intellect’s Q2FY22 performance held on 28[th] October 2021, we have received several queries regarding our investment in ‘Alternative Investment Fund’

Intellect Design Arena Limited proposes to set up an Alternative Investment Fund (AIF) for INR 1000 Mn to further pursue its transition from a Product Company to a Fintech Platform based company. The investment will be set up in ‘Alternative Investment Fund-Category II’ and not ‘Category III’, as mentioned in the quarterly results and associated investor presentation.

As Intellect integrates and participates in the Platform economy with Marketplaces and Ecosystems, there would be opportunities to collaborate with specific Partners who would complement our technical and functional expertise and help expand the business. This AIF is meant to make minority investments in such Partners to ensure alignment with Intellect's vision to become a world leading fintech platform. An AIF enables separation of risk along with a seamless process of financial accounts consolidation and related aspects while dealing with Startups/ Digital natives and hence preferred as a vehicle of investment.

Please note that this is an enabling resolution. The investments in the AIF may happen over the next 6-24 months according to the opportunities available and identified according to their suitability and the funds will be on needs basis. With the current business generating Cash, the investments in AIF will not impact company operations.

Kindly take the above information on record.

Yours truly, for Intellect Design Arena Limited

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V V Naresh Company Secretary and Compliance Officer

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