The company is set to buyback a maximum of 9,42,300 equity shares at a price of Rs. 210 per share, utilizing the tender offer route.
Rajkot (Gujarat) [India], February 8: Rajoo Engineers Ltd, a prominent player in the Indian plastic extrusion machine manufacturing sector, boasting nearly 35 years of excellence in extrusion, has unveiled its share buyback program. The company aims to repurchase a maximum of 9.42 lakh equity shares at a rate of Rs. 210 per share through the tender offer route. Buyback offer is open from Feb 6 and will close on Feb 12. Entitlement Ratio for small shareholders is kept at 3 Equity Shares out of 74 equity shares held on the record date.
This strategic buyback is designed to facilitate the return of surplus cash to shareholders who hold equity shares, aligning with their shareholding proportions. Ultimately, the initiative seeks to augment the overall returns for shareholders and optimise capital structure.
The company had set January 31, 2024, as the Record Date to ascertain the eligibility and identity of equity shareholders entitled to participate in the Buyback. Shareholders have passed a special resolution, endorsing the buyback proposal, which is intended to be implemented proportionately among all equity shareholders and beneficial owners of equity shares through the tender offer route using the Stock Exchange Mechanism.
The company has approved a buyback proposal for up to 9,42,300 fully paid-up equity shares with a face value of Rs. 1 each (constituting 1.53% of the total paid-up equity capital as of March 31, 2023). The buyback will be executed at a price of Rs. 210 per equity share, and the payment will be made in cash, with the total consideration not exceeding Rs. 19.78 crore. The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, involvees the allocation of several Equity Shares as per their entitlement or 15% of the number of Equity Shares to be repurchased whichever is higher, reserved for the small shareholders.
| Objective of Buyback The proposed buyback is designed to facilitate the return of surplus cash to equity shareholders, aligning with their shareholding proportions, and consequently bolstering the overall returns to shareholders. By reducing the equity base through the buyback, there is a potential for an enhancement in return on equity, contributing to a sustained long-term increase in shareholders’ value. The buyback is a strategic move aimed at optimizing the capital structure of the company, reflecting a proactive approach to managing financial resources and ensuring efficient deployment of capital. |
Founded in 1986, Rajoo Engineers Ltd has evolved into an internationally recognized leader in blown film and sheet extrusion lines. The company holds a dominant market position in blown film lines, sheet lines, and thermoformers within the Indian sub-continent and has installations spanning across 70-plus countries, including prominent markets like Germany, Spain, and the UK. With a strategic focus on blown film, sheet extrusion lines, and thermoformers, the company has secured a premium standing in this segment. Significantly, over 50% of the company’s total business comes from exports.
The company has consistently delivered outstanding operational and financial performance over the years. In Q3FY24, it reported a consolidated net profit of Rs. 6.09 crore, marking a substantial year-on-year increase of 143.5%. The EBITDA stood at Rs. 7.63 crore, reflecting a noteworthy year-on-year rise of 141%, while the revenue reached Rs. 60.0 crore, representing a significant year-on-year increase of 64%.
For the cumulative period of 9MFY24, the company continued its impressive performance, reporting a consolidated net profit of Rs. 13.92 crore, indicating a robust year-on-year growth of 128.4%. The EBITDA for this period was reported at Rs. 17.72 crore, showcasing a substantial year-on-year rise of 133.6%. Additionally, the revenue for 9MFY24 amounted to Rs. 144.7 crore, marking a noteworthy year-on-year increase of 63.7%.
Throughout its history, the company has garnered significant recognition and achievements. In 2003, it received the Export Excellence Certificate from the Engineering Export Promotion Council of India for achieving the highest exports in that year. Additionally, during Plastindia, the company launched Asia’s highest output 3-layer blown film line with stack die (UCD).
Being a technology driven Company, product innovations, world-class quality, state-of-the-art workmanship, increased energy efficiency and high levels of sophistication and automation have become the hallmark of Rajoo products. This has helped positioned the Company’s products on a global platform, competing with the established world leaders. The company’s product portfolio includes Downward Extrusion Blown Film Lines, Mono Layer Brown Film Lines, Three Layer Blown Film Lines, Two extruder 3 layer ABA blown film line, Five Layer Blown Film Lines, Seven Layer Blown Film Lines among many others.
The year 2004 saw the company being honored with the GUJARAT GAURAV AWARD, acknowledging its outstanding contributions to the plastic industry. In 2013, Mr. C. N. Doshi, the Mentor of Rajoo Engineers, was bestowed with a Lifetime Achievement Award for his noteworthy contributions to innovation in the plastics processing machinery sector and his impact on the global plastic industry. During the same period, the company achieved a milestone by developing Asia’s first-ever smallest 5-layer sheet line, showcased at K-Germany, and recognized by IPMMI. These accolades underscore the company’s commitment to excellence and innovation in the field.
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