Diffusion Engineers IPO - AstroIPO

Diffusion Engineers IPO


September 23, 2024 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Diffusion Engineers Limited is set to debut on the Indian stock market with its IPO running from September 26 to September 30, 2024. This company is offering 9,405,000 shares to raise up to ₹158 crore.

The price band is ₹159 to ₹168 per share, with a face value of ₹10. Investors can bid for a minimum lot of 88 shares, requiring an investment of ₹14,784 at the upper price band. Employees are offered a discount of ₹8 per share, potentially increasing their participation.

This book-built issue will be listed on both BSE and NSE, providing liquidity across major exchanges. As of March 31, 2024, Diffusion Engineers had a market capitalization of ₹628.76 crore, indicating a substantial presence in its sector.

The promoter group, consisting of Mr. Prashant Garg, Dr. Nitin Garg, and Ms. Chitra Garg, currently holds 93.10% of the company. Post-IPO, the total outstanding shares will increase from 28,021,259 to 37,426,259. This expansion in the share base could enhance liquidity for the stock.

Bigshare Services Pvt Ltd will serve as the IPO registrar, managing the technical aspects of share allocation. Unistone Capital Pvt Ltd is the lead manager, overseeing the IPO process.

Diffusion Engineers IPO Details

IPO Size ₹158.00 Cr
Price Range ₹159 - ₹168
Retail Quota 35%
QIB Quota 50%
NII Quota 15%
Employee Discount ₹8 per share
Listing at NSE and BSE
Minimum Quantity 88
Investment (cut-off price) ₹14,784
Pre IPO Promotor Holding 93.10%
Post IPO Promotor Holding Update soon
DHRP Draft Click Here
RHP Draft Click Here
Anchor Investors List Click Here

Diffusion Engineers IPO Timelines

26/09/2024
Start Date
30/09/2024
End Date
01/10/2024
Allotment Date View Status
03/10/2024
Refund Initiation
03/10/2024
Credit of Shares to Demat Ac
04/10/2024
Listing Date

Diffusion Engineers IPO Lot Size

Application Lot Size Shares Amount
Retail Minimum 1 88 ₹14,784
Retail Maximum 13 1144 ₹192,192
S-HNI Minimum 14 1232 ₹206,976
B-HNI Minimum 68 5984 ₹1,005,312

Diffusion Engineers IPO Subscription Status

QIB NII Retail EMP Total
95.74x 207.60x 85.61x 95.05x 114.50x

IPO Performance on Listing Day

Opening Price Closing Price Day High Day Low
₹193.50 ₹203.17 ₹203.17 ₹193.05

Diffusion Engineers IPO Company Financials

Year Total Income Total Expense PAT
FY 2022 ₹208.75 ₹187.65 ₹17.05
FY 2023 ₹258.67 233.14 ₹22.15
FY 2024 ₹285.56 ₹245.58 ₹30.8

About Company

After being founded as a Private Limited Company in 1982, Diffusion Engineers Limited experienced a number of important changes. One of the most important turning points in its corporate history was its 1995 conversion to a Public Limited Company.

From commencing manufacturing of welding electrodes in 1993 to crossing a turnover of ₹2000.00 million in 2023, Diffusion Engineers has consistently strived for excellence. Its entry into joint ventures and subsidiaries, as well as its land acquisitions for production plants, demonstrate its dedication to innovation and market leadership.

Its industrial capability is further validated by awards and accreditations. Recognitions such as the Best Employer Brands and Great Place to Work certifications affirm its dedication to employee welfare and organisational excellence. Moreover, accreditations by the National Accreditation Board underscore its commitment to quality and standards compliance.

Incorporation Date Sector Managing Director
2000 Engineering Prashant Garg

Know Before Investing

Diffusion Engineers IPO Strengths

  • Diffusion Engineers Private Limited has evolved from manufacturing welding consumables to providing comprehensive welding services and heavy equipment manufacturing, positioning itself as an end-to-end solution provider for optimal equipment performance and longevity.
  • The company plays a crucial role in the OEM ecosystem, serving diverse clients in core industries such as steel, power, and cement, with strategic partnerships enhancing its expertise, reliability, and tailored solutions.
  • Located in Nagpur, Maharashtra, the company’s manufacturing units benefit from a strategic position that facilitates efficient logistics and nationwide distribution, while subsidiaries and exports to over 25 countries support market expansion and diversification for sustained growth.

Diffusion Engineers IPO Risks

  • The company relies primarily on the domestic market for sales, making it vulnerable to downturns that could reduce market share and financial performance.
  • All manufacturing facilities are situated in Nagpur, Maharashtra; localized social unrest, natural disasters, or production disruptions could significantly affect operations and financial condition.
  • Business performance is closely tied to the health of certain industries, with economic disruptions and decreased demand in various sectors potentially harming earnings and financial stability.
  • Plans to establish new production facilities involve significant financial investment and operational risks; delays, cost overruns, or disruptions in asset transportation could adversely impact financial performance and operational efficiency. Additionally, challenges in obtaining necessary approvals and licenses for the new facilities may further affect business operations.

Swot Analysis for Diffusion Engineers IPO

Strengths

Weaknesses

Opportunities

Threats

Company Details

Diffusion Engineers Limited

T-5 & T-6,
Nagpur Industrial Area, MIDC,
Hingna, Nagpur – 440016

Phone: +91 9158317943

Email: [email protected]

Website: https://www.diffusionengineers.com/

IPO Registar Details

Bigshare Services Pvt Ltd

Phone: +91-22-6263 8200

Email: [email protected]

Website: https://ipo.bigshareonline.com/ipo_status.html

FAQs

The key objectives of Diffusion Engineers IPO are:

  • The company plans to allocate ₹666.33 million towards expanding the existing manufacturing facility at Khapri (Uma), Nagpur, Maharashtra, for enhancing production capacity and operational efficiency.
  • Provision of ₹303.85 million for establishing a new manufacturing facility at Hingna, Sonegaon District, Nagpur, Maharashtra, to cater to increased demand and facilitate geographical diversification.
  • Allocation of ₹220.00 million towards funding the Company’s working capital needs, ensuring smooth operations and sustaining growth momentum.
  • The remaining proceeds will be allocated for general corporate purposes, not exceeding 25% of the Gross Proceeds, in compliance with regulatory requirements.

Unistone Capital Pvt Ltd is the book-running lead managers for the Diffusion Engineers IPO.

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