Rajoo Engineers signs non-binding offer for fresh acquisition

Rajkot, July 26, 2025 — In a move that could redefine its growth trajectory, Rajoo Engineers Limited has signed a non-binding term sheet for a fresh acquisition aimed at expanding its technological capabilities and market presence. The development marks a strategic pivot for the Indian extrusion machinery manufacturer, known for its innovations in plastic processing solutions.

Acquisition Details Underway

Rajoo Engineers, in a regulatory filing with the BSE on Friday, confirmed that it has entered into a non-binding agreement to explore the acquisition of an undisclosed company operating in a complementary business domain. The target company is said to be involved in advanced extrusion technologies and has a significant footprint in both domestic and international markets.

“The Board has approved signing of a non-binding term sheet with a strategic intent to explore inorganic growth opportunities that align with our long-term vision,” the company stated.

The due diligence process is expected to begin shortly, and both parties are optimistic about reaching a definitive agreement by the end of Q3 FY25, subject to regulatory approvals and customary closing conditions.

Analyst Perspective: Strategic Synergy or Market Play?

Industry analysts have reacted positively to the announcement, viewing it as a natural extension of Rajoo’s growth strategy.

“Rajoo Engineers has a solid base in extrusion machinery, and this acquisition could help it move up the value chain by adding smart technologies or expanding into newer geographies,” said Rohit Mistry, Capital Goods Analyst at MKF Securities.

The company has been steadily diversifying its product line in recent years, venturing into eco-friendly and energy-efficient solutions for the packaging and infrastructure sectors. According to analysts, the latest move could further bolster its positioning amidst rising global demand for sustainable processing equipment.

Market Context: Riding the Industry Upswing

The extrusion machinery industry has been witnessing a resurgence driven by:

• Increased demand for recyclable packaging solutions

• Rapid infrastructure development

• Government policies promoting local manufacturing under the “Make in India” campaign

Rajoo Engineers, already a beneficiary of these tailwinds, appears poised to leverage this momentum through the potential acquisition.

In the last financial year, the company reported a 22% increase in revenue, with exports contributing nearly 45% of the total turnover. Its share price has also seen a 30% uptick over the past six months, outperforming the BSE Capital Goods Index.

Investor Outlook: Growth-Centric Sentiment Prevails

Investors greeted the acquisition announcement with cautious optimism. While the term sheet remains non-binding, it signals management’s intent to pursue aggressive but calculated expansion.

“If the acquisition adds technological differentiation or helps Rajoo scale its R&D, it could be a value accretive move,” said Shreya Iyer, Head of Research at Zenith Capital.

However, she added that due diligence results and final valuation will play a crucial role in determining investor sentiment.

Rajoo Engineers also hinted at funding the deal through a mix of internal accruals and strategic borrowings, ensuring minimal shareholder dilution. The company is expected to disclose further financial specifics after the completion of due diligence.

Strategic Fit and Future Roadmap

The acquisition target, reportedly headquartered in South Asia, specializes in high-performance machinery for multilayer film and sheet extrusion—segments where Rajoo aims to fortify its presence. This aligns with the firm’s Vision 2030, which emphasizes:

• Technological upgradation

• Sustainability leadership

• Global market expansion

Rajoo Engineers' Managing Director, Sunil Jain, commented:

“This is more than just an acquisition. It’s about synergy, innovation, and achieving scale. We are committed to creating long-term value for our stakeholders through such strategic alignments.”

What’s Next? Key Milestones to Watch

Investors and market watchers should keep an eye on the following upcoming developments:

1. Completion of Due Diligence – Likely by late August 2025

2. Signing of Definitive Agreement – Expected in Q3 FY25

3. Regulatory and Board Approvals – Post final agreement

4. Earnings Impact Assessment – In the next quarterly report

Any delays or changes in deal terms could lead to volatility in stock performance.

A Calculated Leap into the Future

With the proposed acquisition, Rajoo Engineers is signaling its readiness to scale new heights and strengthen its technological moat. While the deal remains in preliminary stages, it reflects a broader industry trend of consolidation and specialization.

If executed well, this move could redefine Rajoo’s competitive landscape and open up new revenue channels, especially in international markets.

For now, all eyes are on the next steps in this potentially transformative acquisition journey.