Rajoo Engineers Limited has reported variations in its Qualified Institutional Placement (QIP) fund utilization, according to the latest monitoring agency report for the quarter ended September 30, 2025. The report, issued by CARE Ratings Limited, highlights significant deviations from the original placement document projections.

Higher Issue Expenses

The most notable deviation was in the issue-related expenses. The actual expenses were 32.63% higher than initially projected in the placement document:

The total issue expenses reached Rs. 24.20 crore, which is 51% higher than the Rs. 16 crore mentioned in the placement document. The additional expenses were funded partly from the issue proceeds and partly from internal accruals and interest income on bank fixed deposits.

Lower Acquisition Costs

On the flip side, the company reported lower costs for its inorganic growth strategy:

Rajoo Engineers attributed this reduction to acquiring a smaller stake in the target entity than originally envisaged. The company utilized these funds to acquire a 60% equity stake in Kohli Printing and Converting Machines Pvt Ltd, which has now become a subsidiary.

Fund Utilization

Despite the variations, Rajoo Engineers has fully utilized the QIP proceeds of Rs. 160 crore:

The monitoring agency noted that there was some comingling of funds in the company's accounts, necessitating reliance on management declarations and chartered accountant certificates to ascertain the exact utilization.

Timely Completion

Despite the cost variations, Rajoo Engineers completed both objectives - the inorganic expansion and the handling of issue expenses - within the projected timeframe of FY26, as per the placement document.

The monitoring report, reviewed by the company's Audit Committee on November 14, 2025, provides transparency on the utilization of QIP proceeds. While the higher-than-expected issue expenses raise questions, the lower acquisition costs suggest a potentially more conservative approach to inorganic growth than initially planned.

Rajoo Engineers Limited , a leading manufacturer of plastic extrusion machinery in India, has reported strong financial results for the second quarter, demonstrating significant growth across key metrics.

Financial Highlights

• Revenue from operations reached Rs. 92.25 crore, marking a 62.39% year-on-year increase.
• EBITDA (excluding other income) grew by 100% to Rs. 18.31 crore.
• EBITDA margin improved to 19.84%, up 374 basis points from the previous year.
• Profit After Tax (PAT) increased by 87.85% to Rs. 13.59 crore.
• PAT margin rose by 200 basis points to 14.74%.

Half-Year Performance

For the first half, Rajoo Engineers reported:

• Revenue growth of 64.67% to Rs. 177.33 crore.
• EBITDA increase of 126.81% to Rs. 36.88 crore.

Key Developments

1. Qualified Institutional Placement (QIP): The company successfully raised Rs. 160 crore through a QIP, attracting strong interest from domestic and international investors.

2. Strategic Acquisition: Rajoo Engineers signed a Non-Binding Indicative Offer (NBIO) for a proposed acquisition in the machinery manufacturing segment, aligning with its vision for inorganic growth.

3. Manufacturing Capabilities Enhancement: The company installed an Okuma Multus machine from Japan at its Shree Yantralaya facility, strengthening its core manufacturing capabilities.

4. Recognition: Rajoo Engineers was recognized with the Gujarat Best Employer Brand award by the World HRD Congress.

5. Strategic Investment: The company invested in a 60% majority stake in Kohli Printing and Converting Machines Pvt. Ltd., aiming to deliver integrated solutions from extrusion to printing, laminating, and slitting.

6. Innovation Showcase: Rajoo Engineers plans to unveil its latest innovation, the PROEX Series – High-Performance Blown Film Extrusion Line, at K-2025 under the theme 'Experience the Excellence.'

Management Commentary

Ms. Khushboo Chandrakant Doshi, Managing Director of Rajoo Engineers Ltd, commented on the company's performance: "During the quarter, we had an encouraging order book resulting in higher production and increased dispatches throughout the period. Our investment in Kohli Printing and Converting Machines marks a transformative step in Rajoo Engineers' evolution as a global technology leader. By uniting two strong engineering legacies, we are building an innovation-driven platform to deliver end-to-end, sustainable solutions and redefine efficiency and value creation in the flexible packaging industry."

Outlook

Rajoo Engineers' strong quarterly performance, coupled with strategic initiatives and innovations, positions the company for continued growth in the plastic extrusion machinery sector. The focus on sustainable and advanced engineering solutions, as evidenced by the upcoming PROEX Series launch, aligns with industry trends towards eco-friendly and efficient manufacturing processes.

As the company continues to expand its capabilities and market presence, investors and industry observers will be watching closely to see how these developments translate into long-term value creation and market leadership.