470% Gain YTD: Rajoo Engineers Announces Rs.19.78 Cr Share Buyback Offer

Rajoo Engineers is a small-cap company in the capital goods sector. Based in Rajkot, Rajoo Engineers is a participant in sheet and blown film extrusion lines. The stock closed on Wednesday on a 2% upper circuit level at Rs 166.45 apiece after the Board of Directors declared a share buyback offer of Rs.19.78 Cr.

"The Board of Directors of the Company at its meeting held today i.e. Wednesday, November 29, 2023 has approved a proposal of buyback up to 9,42,300 (Nine Lakh Forty Two Thousand Three Hundred Only) fully paid-up equity shares of the face value of Rs. 1/- each (representing 1.53 % of the total number of equity shares in the paid-up equity capital of the Company as on March 31, 2023) 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)," said Rajoo Engineers in a stock exchange filing.

"The buyback is proposed to be made from the existing shareholders of the Company as on the record date on a proportionate basis through the Tender Offer route through Stock Exchange Mechanism as prescribed under Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018, as amended and the Companies Act, 2013 and rules made thereunder. The Board also noted the intention of the Promoters and Promoter group of the Company to participate in the proposed Buyback. The Buyback is subject to approval of the Shareholders by means of a special resolution through a postal ballot. The public announcement and Letter of Offer setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations," the company informed the stock exchanges.

In accordance with the buyback regulations, the Board has designated Mr. Rohit Sojitra, Company Secretary, as the Compliance Officer for the purposes of the proposed buyback. The Manager of the Buyback Offer has been designated by the Board of Directors as GYR Capital Advisors Private Limited, a SEBI Registered Category I Merchant Banker.

The scrip reached a 52-week-high of Rs 166.45 on (29/11/2023) and a 52-week-low of Rs 23.75 pn (27/03/2023). The stock has generated a multibagger return of 475.95% and YTD it has gained 468.09% so far in 2023.