Rain Commodities - Buy Back Offer

Rain Commodities Ltd has informed the market that the Company ("Rain Commodities Ltd") has issued this Public Announcement ("PA") to the Equity Shareholders / Beneficial Owners of the equity shares of the Company in compliance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998.

The maximum offer price of Rs 307/- per share has been arrived after considering the stock market quotations, book value, return on net-worth and the possible impact of the buy-back on the earnings per share of the Company. The maximum buyback price of Rs 307/- per share offers a premium of 41.87% over the closing price on August 29, 2008 at BSE, being the latest trading day prior to the date of the board meeting for approving the buyback offer and 41.57% over the closing price on the same day at NSE.

Propose Time Table:

Board Meeting approving Buy Back - September 01, 2008

Date of opening of the Buyback - September 25, 2008

Acceptance of Shares - Within 7 days of the relevant payout dates of the respective Stock Exchanges

Extinguishment of Shares - Within 15 days of acceptance as above

Last Date for the Buy-back - April 30, 2009 or when company completed buyback to the extent of 12,00,000 shares under the offer or upon exhaustion of Rs 260 million or the date as may be decided by the Board of Directors of the Company, whichever is earlier