Diffusion Engineers Limited IPO Overview 

Diffusion Engineers’ IPO is a book-built issue valued at ₹158 crores, offering 0.94 crore fresh shares. The IPO opens for subscription from September 26 to September 30, 2024, with allotments expected on October 1, and the shares are tentatively scheduled to be listed on BSE and NSE on October 4, 2024. The price band is set between ₹159 and ₹168 per share, with a minimum application size of 88 shares, requiring a retail investment of ₹14,784.

For sNII investors, the minimum investment is ₹206,976 (14 lots or 1,232 shares), and for bNII, it’s ₹1,005,312 (68 lots or 5,984 shares). There is also a reservation of 50,000 shares for employees at an ₹8 discount. Unistone Capital Pvt Ltd is the lead manager, and Bigshare Services Pvt Ltd serves as the registrar for the IPO.

Refer to Diffusion Engineers IPO RHP for detailed information.

Diffusion Engineers Limited IPO Important dates

Diffusion Engineers IPO opens on September 26, 2024, and closes on September 30, 2024.

IPO Open Date Thursday, September 26, 2024
IPO Close Date Monday, September 30, 2024
Basis of Allotment Tuesday, October 1, 2024
Initiation of Refunds Thursday, October 3, 2024
Credit of Shares to Demat Thursday, October 3, 2024
Listing Date Friday, October 4, 2024
Cut-off time for UPI mandate confirmation 5 PM on September 30, 2024

Diffusion Engineers Limited IPO  Financial Performance

Diffusion Engineers Limited’s revenue increased by 10% and profit after tax (PAT) rose by 39% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets ₹275.59 crore ₹230.34 crore ₹189.55 crore
Revenue ₹285.56 crore ₹258.67 crore ₹208.75 crore
Profit After Tax ₹30.8 crore ₹22.15 crore ₹17.05 crore
Net Worth ₹190.7 crore ₹142 crore ₹120.65 crore
Reserves and Surplus ₹163.03 crore ₹138.39 crore ₹117.34 crore
Total Borrowing ₹34.44 crore ₹48.09 crore ₹24.6 crore

Diffusion Engineers Limited IPO Key Performance Indicator

The market capitalization of Diffusion Engineers IPO is Rs 628.76 Cr. KPI as of March 31, 2024.

KPI Values
ROE 18.52%
ROCE 20.63%
Debt/Equity 0.18
RoNW 18.52%
P/BV 2.47
PAT Margin (%) 10.79
Pre IPO Post IPO
EPS (Rs)  10.99 8.23
P/E (x)  15.28 20.41

Diffusion Engineers Limited IPO Objectives

The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects:

  1. Funding capital expenditure requirements towards the expansion of existing manufacturing facility at Khasra No. 36, 38/1, 38/2, 38/3, Khapri (Uma), Nagpur- 441 501, Maharashtra, India (Proposed Expansion);
  2. Setting up of a new manufacturing facility located at Plot Nos. 33-B/1/1/ & 33-B/1/1/Part, MIDC, Hingna, Sonegaon District, Nagpur-440 016, Maharashtra (Proposed Facility);
  3. Funding working capital requirements of the Company; and
  4. General Corporate Purposes.

Diffusion Engineers Limited IPO Lot Size

Investors can bid for a minimum of 88 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 88 ₹14,784
Retail (Max) 13 1144 ₹192,192
S-HNI (Min) 14 1,232 ₹206,976
S-HNI (Max) 67 5,896 ₹990,528
B-HNI (Min) 68 5,984 ₹1,005,312

Diffusion Engineers Limited IPO Details

IPO Date September 26, 2024 to September 30, 2024
Listing Date [September 30, 2024]
Face Value ₹10 per share
Price Band ₹159 to ₹168 per share
Lot Size 88 Shares
Total Issue Size 9,405,000 shares
(aggregating up to ₹158.00 Cr)
Fresh Issue 9,405,000 shares
(aggregating up to ₹158.00 Cr)
Employee Discount Rs 8 per share
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Share holding pre issue 28,021,259
Share holding post issue 37,426,259

Diffusion Engineers Limited IPO Company Overview and Services

Founded in 1982, Diffusion Engineers Limited is a leader in the manufacturing of welding consumables, wear plates, and heavy machinery for core industries. The company specializes in providing repair and reconditioning services for heavy machinery and equipment, enhancing operational efficiency for its clients.

Key Offerings

Diffusion Engineers Limited also engages in trading wear protection powders and welding and cutting machines. At its state-of-the-art production facilities, the company employs the Super Conditioning process—a specialized surface treatment that significantly enhances wear resistance, eliminates stresses, and improves reparability. This innovative process extends the service life of machine components while reducing overall production costs.

Manufacturing Units

The company operates four strategically located manufacturing units:

  • Unit I: Specializes in manufacturing welding electrodes for special purposes.
  • Unit II: Focuses on producing flux-cored wires, wear plates, and wear parts through advanced fabrication and machining techniques.
  • Unit III: Dedicated to providing coatings for abrasion and corrosion resistance, ensuring longevity and reliability.
  • Unit IV: Recently commenced operations in FY 2024, specializing in flux-cored wires, wear plates, and heavy engineering components.

Expert Team

As of February 29, 2024, Diffusion Engineers Limited boasts a highly skilled team of over 130 qualified engineers, committed to delivering exceptional quality and service in every aspect of their operations.

Diffusion Engineers Limited IPO SWOT Analysis

Strengths

  1. Established Brand: With over 40 years of experience in the manufacturing sector, Diffusion Engineers has built a reputable brand recognized for quality and innovation.
  2. Diverse Product Range: The company offers a wide variety of products, including welding consumables, wear plates, and specialized repair services, catering to multiple core industries.
  3. Advanced Manufacturing Facilities: Four manufacturing units equipped with modern technology enhance production efficiency and product quality, including the innovative Super Conditioning process.
  4. Skilled Workforce: A team of over 130 qualified engineers contributes to R&D and product development, ensuring continuous improvement and competitiveness.

Weaknesses

  1. Market Dependency: Heavy reliance on core industries may make the company vulnerable to sector-specific downturns and economic fluctuations.
  2. Limited Geographic Presence: While the company has strong operations in Nagpur, Maharashtra, limited international presence could restrict growth opportunities in global markets.
  3. High Capital Expenditure: Continuous investment in technology and infrastructure may strain financial resources, particularly in times of economic uncertainty.

Opportunities

  1. Growing Demand for Industrial Solutions: The increasing need for durable and efficient machinery in various sectors presents significant growth opportunities.
  2. Expansion into New Markets: Potential for geographic expansion into emerging markets, particularly in Asia-Pacific and Africa, where infrastructure development is on the rise.
  3. Technological Advancements: Leveraging advancements in manufacturing technology can lead to improved product offerings and operational efficiencies.
  4. Sustainability Trends: Increasing focus on sustainable manufacturing practices could position Diffusion Engineers as a leader in eco-friendly solutions.

Threats

  1. Intense Competition: The manufacturing industry is highly competitive, with numerous players vying for market share, which could pressure margins and market positioning.
  2. Economic Volatility: Fluctuations in the global economy and raw material prices can impact profitability and operational costs.
  3. Regulatory Changes: Changes in industry regulations and standards may necessitate additional compliance costs and operational adjustments.
  4. Supply Chain Disruptions: Global supply chain issues, exacerbated by geopolitical tensions or natural disasters, could impact production timelines and costs.

Diffusion Engineers Limited IPO GMP Details

Diffusion Engineers IPO last GMP  is ₹58, last updated Sep 24th 2024. With the price band of 168.00, Diffusion Engineers IPO’s estimated listing price is ₹226 (cap price + today’s GMP).The expected percentage gain/loss per share is 34.52%.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
30-09-2024 Close 168.00 ₹58  3900/54600 ₹226 (34.52%) 30-Sep-2024
29-09-2024 168.00 ₹58  3900/54600 ₹226 (34.52%) 29-Sep-2024
28-09-2024 168.00 ₹64   4300/60200 ₹232 (38.1%) 28-Sep-2024
27-09-2024 168.00 ₹55  3700/51800 ₹223 (32.74%) 27-Sep-2024
26-09-2024 Open 168.00 ₹90   6000/84000 ₹258 (53.57%) 26-Sep-2024
25-09-2024 168.00 ₹80   5400/75600 ₹248 (47.62%) 25-Sep-2024
24-09-2024 168.00 ₹77   5100/71400 ₹245 (45.83%) 24-Sep-2024
23-09-2024 168.00 ₹50  3300/46200 ₹218 (29.76%) 23-Sep-2024

Diffusion Engineers Limited IPO subscription status 

Diffusion Engineers IPO subscribed 40.54 times. The public issue subscribed 46.23 times in the retail category, 0.47 times in QIB, and 80.33 times in the NII category by September 30, 2024.

Investor Category Subscription (times) Shares Offered* Shares bid for Total Amount (Rs Cr.)*
Anchor Investors 1 28,06,500 28,06,500 47.15
Qualified Institutions 0.47 18,71,000 8,87,128 14.90
Non-Institutional Buyers 80.33 14,03,250 11,27,18,232 1,893.67
  bNII (bids above ₹10L) 71.06 9,35,500 6,64,77,312 1,116.82
  sNII (bids below ₹10L) 98.86 4,67,750 4,62,40,920 776.85
Retail Investors 46.23 32,74,250 15,13,83,672 2,543.25
Employees 50.28 50,000 25,13,896 42.23
Total ** 40.54 65,98,500 26,75,02,928 4,494.05

Total Application : 1,768,340

Note:

  • *: “Shares Offered” and “Total Amount” are calculated based on the upper price of the issue price range.

  • **: The portion of anchor investors (or market makers) is not included in the total number of shares offered.

Diffusion Engineers IPO Subscription Details (times)

Date QIB NII Retail EMP Total
Day 1
Sep 26, 2024		 0.03 6.85 11.58 17.43 7.34
Day 2
Sep 27, 2024		 0.28 47.39 34.85 38.09 27.74
Day 3
Sep 30, 2024		 0.47 80.33 46.23 50.28 40.54

Diffusion Engineers Limited IPO Allotment status 

The allotment status of Diffusion Engineers IPO is expected to be available on October 1, 2024.

Diffusion Engineers IPO allotment status is not available at this time. Diffusion Engineers IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Diffusion Engineers Limited IPO allotment status.

To check Diffusion Engineers IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Bigshare Services Pvt Ltd either by phone or email. Investors can call on +91-22-6263 8200 or send an email with all relevant details to ipo@bigshareonline.com.

Diffusion Engineers Limited IPO Contact Details

Diffusion Engineers Limited
T-5 & T-6,
Nagpur Industrial Area, MIDC,
Hingna, Nagpur – 440016
Phone: +91 9158317943
Email: cs@diffusionengineers.com
Website: https://www.diffusionengineers.com/

 Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.

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