The shares of the Small-cap company, specializing in the design, development, and manufacturing of plastic extrusion machinery, are in focus upon successfully raising QIP worth Rs. 160 crores, in which major institutional investors, including Morgan Stanley Asia and Rajasthan Global Securities, each acquired over 10% of the QIP issue.
With a market capitalization of Rs. 2,229.75 Crores on Tuesday, the shares of Rajoo Engineers Ltd declined by 4.7 percent after making a low of Rs. 132.10 compared to its previous closing price of Rs. 138.75.
Rajoo Engineers Ltd, engaged in the design, development, and manufacturing of plastic extrusion machinery has successfully completed a Qualified Institutional Placement (QIP), raising Rs. 160 crore through the allotment of 1,46,78,900 fully paid-up equity shares at Rs. 109 per share, which includes a premium of Rs. 108 and represents a 4.74% discount to the floor price of Rs. 114.42
The issue opened on July 15, 2025, and closed on July 21, 2025. Following the allotment, the company’s paid-up share capital has increased from Rs. 16.40 crore to Rs. 17.87 crore.
Major institutional investors participating in the QIP include Morgan Stanley Asia (Singapore), which was allotted 15,60,000 shares (10.63%), Rajasthan Global Securities Pvt. Ltd. with 15,64,223 shares (10.66%), Moneywise Financial Services Pvt. Ltd. with 9,17,450 shares (6.25%), and Dovetail India Fund – Class 14, receiving 8,25,690 shares (5.63%). These allottees each acquired over 5% of the total QIP issue, underscoring strong institutional confidence in the company’s growth prospects.
Financials & Others
The company’s revenue rose by 66.6 percent from Rs. 51 crore to Rs. 85 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 5 crore to Rs. 15 crore during the same period.
The company is fundamentally strong with a low PEG ratio of 0.48, indicating potential undervaluation. It is debt-free and has a solid promoter holding of over 65%, reflecting strong promoter confidence.
Rajoo Engineers Ltd, with over 38 years of excellence in manufacturing extrusion machinery and promoters bringing 50+ years of industry experience, the company has completed 5,000+ installations across 70+ countries. Backed by a strong order book of Rs. 140 crore in FY24, it offers 26+ products across six key segments.
The company has a set of marquee clients, including Reliance Industries, Indian Oil, Uflex (formerly Wheel Flexible Packaging), Polycab Wires and Cables, Alpha Adding Value, Navitas Alpha, Gazi Pipes, RPL, and others.
Written by Sridhar J
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