RAJ RAYON LIMITED

(The company was incorporated as a limited company under the Companies Act, 1956 on August 17, 1993 with the Registrar of Companies, Maharashtra. The Company obtained Certificate of Commencement of Business dated September 01,1983)

Registered Office : 3A/205, Mittal Industrial Estate, Sakinaka, Andheri (East), Mumbai 400 059. Tel: 91-22-2850 8905/06; Fax: 91-22-2852 3574, E-rnail: rripublicissue@rajrayon.com; Website : www.rajrayon.com; Compliance Officer: Mr Pradeep Kumar Agrawal

PUBLIC ISSUE OF 85,00,000 EQUITY SHARES OF RS. 10/- EACH ISSUED FOR CASH AT A PRICE OF RS. 65/- (INCLUDING PREMIUM OF RS. 55/-) PER SHARE AGGREGATING RS. 5525.00 LACS (HEREINAFTER REFERRED TO AS "THE ISSUE") INCLUDING 8,50,000 EQUITY SHARES OF RS.10/- EACH ISSUED FOR CASH AT A PRICE OF RS.65/- EACH TO EMPLOYEES AND SHAREHOLDERS OF GROUP COMPANY RESPECTIVELY THE NET ISSUE TO THE PUBLIC OF 68,00,000 EQUITY SHARES OF RS.10/- EACH ISSUED FOR CASH AT A PRICE OF RS. 65/- AGGREGATING TO RS. 4420.00 LACS. THE ISSUE CONSTITUTES 49.95% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY THE FACE VALUE PER EQUITY SHARE IS RS.10/-EACH AND THE ISSUE PRICE IS 6.5 TIMES OF THE FACE VALUE

The Issue has been made through the 100% book building process wherein upto 50% of the Issue to the public has been allocated on a discretionary basis to Qualified Institutional Buyers (QIBs). Further, not less than 15% of the Issue and not less than 35% of the Issue has been allotted on a proportionate basis to Non- Institutional Bidders and Retail Bidders, respectively.

The Issue received 49455 applications for 32811821 equity shares (including reserved category for Employees & Shareholders of Group Company) resulting in 3.8602 times subscription. The details of the valid applications received in the Issue from Retail, Non Institutional Investor, Qualified Institutional Investor, Employee and Eligible Shareholders categories are as under:

Final Demand

A sample of the final demand at different bid prices is as under:

The Basis of Allotment was finalized in consultation with The BombayStock Exchange Limited on January 31, 2006.

A) Allocation to Retail Investors

The application from the Retail Investors, who have bid at cut-off or above the Issue Price of Rs.65/- per Equity Share have been considered for allotment. The category was over subscribed 7.49502 times. The total number of shares allotted in this category is 2786662 Equity Shares. The category-wise details of the Basis of Allocation are as under:

B) Allocation to Non Institutional Investors (Individuals who have applied for 1600 shares and above; Bodies  Corporate/Institutions)

The category was subscribed 2.83048 times. The total number of shares allotted in this category is 1426638 Equity Shares.
All Investors who have applied for 1600 shares and above have been allotted Equity Shares on a Firm and Proportionate Basis.

C) Allocation to QIBs

The QIB portion was subscribed 1.87 times. The details are as under:

The Board of Directors (IPO) of the Company at its Meeting held at Mumbai on January 31, 2006 has approved the basis of allocation. The Refund Orders have been dispatched to the First/Sole applicant at the address registered with the depositories. In case the same is not received within ten days, investors may contact the Registrars at the address given below.

INVESTORS PLEASE NOTE

This details of the allocation made are being hosted on the webslte of Registrars to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com

All future correspondence in this regard may kindly be addressed to the Registrars to the Issue quoting full name of the First/ Sole applicant, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:

INTIME SPECTRUM REGISTRY LIMITED

C13, Pannalal Silk Mills Compound, L B S Marg, Bhandup (West), Mumbai 400078; Tel: 91-22-2596 0320-8; Fax: 91-22-2596 0329 E-mail: isrlipo@intimespectrum.com; Website: www.intimespectrum.com;
Contact Person: Mr. Vishwas Attavar