Gearing Up for Growth: Rajoo Engineers Launches QIP at ₹114.42 Per Share

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Rajoo Engineers Ltd kicked off its Qualified Institutional Placement (QIP) issue officially, setting the floor price at ₹114.42 a equity share. Rajoo's capital-raising exercise in this way indicates the desire of the company to boost its financial strength and accelerate growth in its polymer extrusion machinery business.

QIP Details
QIP issue was made pursuant to SEBI guidelines, for raising long-term funds from institutional investors.
- ₹114.42 per share was the floor price calculated on the basis of the price formula as per SEBI's ICDR guidelines
- The company may offer up to 5 percent discount on the floor price with board's and shareholders' approval
- The funds generated will be applied to working capital, repayment of debt, and capacity increase projects.

Strategic Reasoning
Rajoo Engineers is going through the QIP route to access institutional money without fully diluting promoter control.
- Capital investment will be used to fund R&D work and product development in high-performance extrusion systems

- It will also enable the company to increase its export market, particularly in market-expansion opportunities in Asia and emerging markets in Africa

- The transformation is part of Rajoo's long-term vision to be a cost-effective, energy-efficient polymer processing solution leader in the world Market Context With a market capitalization of about ₹500 crore and a strong order book, Rajoo Engineers is well placed to take advantage of growing demand in packaging, agriculture, and infrastructure segments. The QIP issue reflects investors' confidence in the company's growth story and operating strength.

Sources: BSE Corporate Announcements, Moneycontrol, Economic Times, Rajoo Engineers Investor Relations