Rajoo Engineers Limited Buyback 2023

Rajoo Engineers Limited is a listed public company incorporated on 08 December, 1986. It is classified as a public limited company and is located in Rajkot, Gujarat. It’s authorized share capital is INR 7.70 cr and the total paid-up capital is INR 6.15 cr.

Rajoo Engineers Limited engages in the design, manufacture, and sale of blown film lines, sheet lines, and thermoformers. The company’s product line includes monolayer blown film lines, multilayer blown film lines, downward extrusion blown film lines, foam extrusion lines, and sheet lines, as well as thermoforming and PS foam vacuum forming machines. Rajoo Engineers also offers technical support, field services, spare parts, training, manuals, and extrusion hints.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jan 31 2024
Buyback Opening Date: Feb 06 2024
Buyback Closing Date: Feb 12 2024
Buyback Offer Amount: ₹ 19.78 Cr
Date of Board Meeting approving the proposal: Nov 29 2023
Date of Public Announcement: Nov 29 2023
Buyback Offer Size: 1.53%
Buyback Number of Shares: 9,42,300
Price Type: Tender Offer
FV: 1
Buyback Price: ₹ 210 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 9,42,300 (Nine Lakh Forty Two Thousand Three Hundred Only) equity shares of the Company (representing 1.53% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 210/- (Rupees Two Hundred and Ten only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 19,78,83,000/- (Rupees Nineteen Crore Seventy Eight Lakhs Eighty Three Thousand Only).

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 122 93 152 172 160
Expenses + 108 86 134 151 146
Operating Profit 14 7 19 21 14
OPM % 12% 8% 12% 12% 9%
Other Income + 1 0 1 3 3
Interest 2 2 1 0 0
Depreciation 4 4 3 3 3
Profit before tax 9 2 15 20 13
Tax % 15% 9% 30% 26% 23%
Net Profit + 8 1 10 15 10
EPS in Rs 1.28 0.24 1.69 2.41 1.63
Dividend Payout % 8% 0% 0% 10% 21%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  Rajoo Engineers Limited Buyback 2023 in Demat or physical form as on the record date [31-01-2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [06-02-2024] by selling your shares through your broker on NSE or BSE. 3. Then on [29-02-2024], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 952 Shares at CPM of Rs. 166 (2,00,000/210)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 158032 158032 158032 158032
No. of Shares Buyback 314 476 714 952
Buyback Profit 13,816 20,944 31,416 41,888
Profit% 8.74% 13.25% 19.88% 26.51%

Recommendation:

(To be Updated)

5 Comments

    This page does not give full information about Rajoo enginner. Even record is not mentioned … Which was today 31st Jan.

    Reply

    From ₹24 to 150+ in a hurry in just a year with very lack lustre financial parameters….?

    Reply

      Gopi ji I tried to buy this stock on Zerodha. There it is showing that this stock is traded in periodic call auction for illiquid securities. Like it trades in 15 min windows during the day. This alone looks like a risk to me.

      Reply

        High risk indeed Sahil ji. Atleast must keep away from commitment until the outcome of the Board meeting is known.

        Reply

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