Diffusion Engineers IPO will open for subscription from 26 September 2024. The company aims for an issue size of ₹158 Cr through this IPO.
Company Overview
| Full name | Diffusion Engineers Limited |
| Sector | Capital Goods |
| Industry | Electrodes & Welding Equipment |
| Company Website | https://www.diffusionengineers.com/ |
About Company
Diffusion Engineers specializes in manufacturing welding consumables, wear plates, wear parts, and heavy engineering machinery for core industries. With extensive experience, the company is dedicated to providing specialized repair and reconditioning services for heavy machinery and equipment. Moreover, they engage in the trade of anti-wear powders, welding, and cutting machinery. These plates are crucial components in a majority of large industrial equipment produced in the company’s heavy engineering division, playing a significant role in the production of industrial equipment for core industries such as cement, steel, power, mining, engineering, oil & gas, and sugar.
The welding consumables market in India is estimated to be around INR 46 billion in fiscal 2023, with projections for fiscal 2026 ranging from INR 58-60 billion. The wear plates market in India is estimated to be approximately INR 20 billion in FY23, and it is expected to grow at a CAGR of 8.5-9.5% to reach around INR 26 billion in FY26. The Indian heavy engineering capital goods industry is estimated to be around INR 2650-2750 billion as of FY23 and is projected to grow at a CAGR of 7-8% from FY23 to FY26, reaching an estimated size of INR 3300-3400 billion by FY26. The company produces a variety of electrodes using alloys like tungsten, nickel, chromium, cobalt, molybdenum, niobium, and vanadium.
The company’s special purpose electrodes business accounted for INR 38.23 crore, INR 52.95 crore, INR 37.18 crore, and INR 29.76 crore, representing 20.34%, 21.70%, 18.99%, and 19.54% respectively of Diffusion Engineers’ total revenue for the period ending on 31 December 2023, for the fiscal years 2023, 2022, and 2021. The company is situated in the Nagpur Industrial Area.
The Objectives of the Issue
- 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);
- 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);
- Funding working capital requirements of the Company; and
- General Corporate Purposes.
Diffusion Engineers IPO Timetable
| IPO Opening date | 26 September 2024 |
| IPO Closing | 30 September 2024 |
| Basis of Allotment | 01 October 2024 |
| Initiation Refund | 03 October 2024 |
| Credit to Demat Account | 03 October 2024 |
| Listing Date | 04 October 2024 |
Diffusion Engineers IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹158.00 Cr – 9,405,000 shares |
| Fresh Issue | ₹158.00 Cr – 9,405,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹159 to ₹168 per share |
| Lot size | 88 Shares |
| Employee Discount | ₹08 per share |
| Shareholding pre-issue | 28,021,259 |
| Shareholding post-issue | 37,426,259 |
| Listing Exchange | BSE & NSE |
Diffusion Engineers IPO Lot Size
| 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 IPO Documents
Diffusion Engineers IPO Reservation Details
Diffusion Engineers IPO offers 94,05,000 shares. 18,71,000 (19.89%) to QIB, 14,03,250 (14.92%) to NII, 32,74,250 (34.81%) to RII, 50,000 (0.53%) to employees and 28,06,500 (29.84%) to Anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 28,06,500 (29.84%) | NA |
| QIB Shares Offered | 18,71,000 (19.89%) | NA |
| NII (HNI) Shares Offered | 14,03,250 (14.92%) | |
| bNII > ₹10L | 9,35,500 (9.95%) | 759 |
| sNII < ₹10L | 4,67,750 (4.97%) | 379 |
| Retail Shares Offered | 32,74,250 (34.81%) | 37,207 |
| Employee Shares Offered | 50,000 (0.53%) | NA |
| Total Shares Offered | 94,05,000 (100%) |
Diffusion Engineers Financial Performance
| FY 2022 | FY 2023 | FY 2024 | |
| Revenue | 204.59 | 254.88 | 278.14 |
| Expenses | 187.65 | 233.14 | 245.58 |
| Net income | 17.05 | 22.15 | 30.80 |
| Margin (%) | 8.33 | 8.69 | 11.07 |
Diffusion Engineers Valuations & Margins
| FY 2022 | FY 2023 | FY 2024 (Pre Issue) | FY 2024 (Post-Issue)* | |
| EPS | 6.09 | 7.91 | 11.00 | 8.24 |
| PE Ratio | – | – | 14.45 – 15.27 | 19.31 – 20.40 |
| FY 2022 | FY 2023 | FY 2024 | |
| RONW (%) | 15.10 | 16.86 | 18.52 |
| NAV | 43.09 | 50.71 | 68.11 |
| ROCE (%) | 17.30 | 18.46 | 20.63 |
| EBITDA (%) | 13.45 | 13.65 | 17.04 |
| Debt/Equity | 0.20 | 0.34 | 0.18 |
Company Promoters
- Mr. Prashant Garg
- Dr. Nitin Garg
- Ms. Chitra Garg
Promoter Holding
| Pre Issue Share Holding | 93.10% |
| Post Issue Share Holding | 69.70% |
Diffusion Engineers Offer GMP Update
| Date | Day-wise IPO GMP | Kostak | Subject to Sauda |
| 3 October 2024 | 60 | – | 4,000 |
| 2 October 2024 | 62 | – | 4,000 |
| 1 October 2024 | 60 | – | 4,000 |
| 30 September 2024 | 63 | – | 4,300 |
| 28 September 2024 | 60 | – | 4,200 |
| 27 September 2024 | 70 | – | 5,000 |
| 26 September 2024 | 75 | – | 5,200 |
| 25 September 2024 | 70 | – | 5,000 |
| 24 September 2024 | 50 | – | 3,500 |
Diffusion Engineers IPO Subscription Update
| Category | Subscription (times) |
|---|---|
| QIB | 95.74 |
| NII | 207.60 |
| bNII (bids above ₹10L) | 203.34 |
| sNII (bids below ₹10L) | 216.13 |
| Retail | 85.61 |
| Employee | 95.05 |
| Total | 114.50 |
Diffusion Engineers IPO Allotment Status
Diffusion Engineers IPO allotment status is now available on Bigshare Services’ website. Click on this link to get allotment status.
Diffusion Engineers IPO Listing Details
| Listing Date | 04 October 2024 |
| BSE Scrip Code | 544264 |
| NSE Symbol | DIFFNKG |
| ISIN | INE184O01015 |
| Final Issue Price | ₹168 per share |
Listing Day Update
| Listing Exchange | BSE | NSE |
| Final Issue Price | ₹168.00 | ₹168.00 |
| Open | ₹188.00 | ₹193.50 |
| Low | ₹188.00 | ₹193.05 |
| High | ₹197.35 | ₹203.17 |
| Last Trade | ₹197.35 | ₹203.17 |
Diffusion Engineers IPO Lead Manager(s)
UNISTONE CAPITAL PRIVATE LIMITED
A/305, Dynasty Business Park, Andheri Kurla Road,
Andheri East, Mumbai 400059, Maharashtra
Phone: +91 9820057533
Email: mb@unistonecapital.com
Website: www.unistonecapital.com
Diffusion Engineers Registrar
BIGSHARE SERVICES PRIVATE LIMITED
S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali
Caves Road, Andheri East, Mumbai – 400 093
Phone: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Diffusion Engineers Contact Details
DIFFUSION ENGINEERS LIMITED
T-5 & T-6, Nagpur Industrial Area, MIDC, Hingna,
Nagpur – 440016 Maharashtra
Phone: +91 9158317943
Email: cs@diffusionengineers.com
Website: www.diffusionengineers.com
Diffusion Engineers IPO FAQs
How many shares in Diffusion Engineers IPO are reserved for HNIs and retail investors?
The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%.
How to apply for a Diffusion Engineer Public Offer?
The best way to apply for Diffusion Engineers public offer is through Internet banking ASBA. You can also apply online through your stock broker using UPI. If you prefer to make paper applications, fill up an offline IPO form and deposit the same to your broker.
What is Diffusion Engineers IPO GMP today?
Diffusion Engineers IPO GMP today is ₹ 60 per share.
What is the Diffusion Engineer’s kostak rate today?
Diffusion Engineer’s kostak rate today is ₹ NA per application.
What is Diffusion Engineers Subject to Sauda rate today?
Diffusion Engineers Subject to Sauda rate today is ₹ 4,000 per application.
Final thoughts
Diffusion Engineers IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. Study the company well and subscribe if you feel good about it. I hope this post will give you enough details to research the company fundamentally. learn well and make wise decisions.
Happy Investing
