Rajoo Engineers Limited Buyback

Rajoo Engineers Limited Buyback (Rajoo Engineers Buyback 2023) Detail

Incorporated in 1986, Rajoo Engineers Limited designs and manufactures blown film lines, sheet lines, and thermoformers.

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, Physically Foamed Sheet Extrusion Line, Cross Lamination Film Line, Lab Line, Mono & Multilayer sheet extrusion system for PS/PP/EVA, Sheet extrusion technology for solar modules, and Single and twin screw extrusion system.

The company’s manufacturing unit is located in Veraval (Shapar), in the district of Rajkot, Gujarat. Rajoo Engineers employs over 312 employees as of December 31, 2023.

Awards and accolades:

In 2003, the company was awarded an Export Excellence Certificate from the Engineering Export Promotion Council of India in recognition of the highest exports during the year as well as launched Asia’s highest output 3-layer blown film line with stack die(UCD) during Plastindia.

Awarded with GUJARAT GAURAV AWARD for its outstanding contributions to the plastic industry in 2004.

In 2013, Mr. C. N. Doshi, Mentor of Rajoo Engineers was awarded a Lifetime Achievement Award in recognition of his contribution to innovation in the plastics processing machinery segment and to the global plastic fraternity, the company also developed Asia’s first-ever smallest 5-layeVeravalr sheet line, displayed at K-germany & awarded by IPMMI.

Necessity of the Issue

Buyback is being accepted,inter-alia, for the following reasons

  • The Buyback will help the Company to return fat cash to its shareholders holding Equity Shares astronomically in proportion to their shareholding, thereby enhancing the overall return to shareholders;
  • The Buyback, which is being enforced through the tender offer route as specified under the SEBI Buyback Regulations, would involve allocation of a number of shares as per their annuity or 15 of the number of shares to be bought back whichever is advanced, reserved for the small shareholders. 
  • The Company believes that this reservation for small shareholders would profit a large number of public shareholders, who would get classified as” Small Shareholders” as per Regulation 2( i)( n) of the SEBI Buyback Regulations;
  • The Buyback may help in perfecting return on equity, by reducing the equity base, thereby leading to a long- term increase in shareholders’ value;
  • The Buyback gives an option to the Shareholders holding Equity Shares of the Company, who can choose to share and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to share and enjoy a attendant increase in their chance shareholding, post the Buyback offer, without fresh investment.
  • The Buyback may help in perfecting return on equity, by reducing the equity base, thereby leading to a long- term increase in shareholders’ value;
  • The Buyback gives an option to the Shareholders holding Equity Shares of the Company, who can choose to share and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to share and enjoy a attendant increase in their chance shareholding, post the Buyback offer, without fresh investment.
  • Optimizes the capital structure.

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