Rajoo Engineers Buyback 2023 vs SM Auto Stamping Buyback 2023

Buyback is being undertaken, inter-alia, for the following reasons:

1. The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby enhancing the overall return to shareholders;
2. The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of a number of shares as per their entitlement or 15% of the number of shares to be bought back whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "Small Shareholders" as per Regulation 2(i)(n) of the SEBI Buyback Regulations;
3. The Buyback may help in improving return on equity, by reducing the equity base, thereby leading to a long-term increase in shareholders' value;
4. The Buyback gives an option to the Shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
5. Optimizes the capital structure.

The Buyback is being undertaken, after taking into account the strategic and operational cash requirements of the company in the medium term and for returning surplus funds to the shareholders in an effective and efficient manner:

The buyback is undertaken for the following reasons

(i) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares thereby, enhancing the overall return to shareholders;

(ii) The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve the allocation of several Equity Shares as per their entitlement or 15% of the number of Equity Shares to be repurchased whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "small shareholders" as per Regulation 2(i)(n) of the SEBI Buyback Regulations;

(iii) The Buyback may help in improving return on equity, by the reduction in the equity base, thereby leading to a long-term increase in shareholders' value; and

(iv) The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash instead of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.