Diffusion Engineers Limited IPO
Diffusion Engineers Limited is launching its initial public offering (IPO) from September 26-30, 2024. The company manufactures welding consumables, wear plates, and heavy machinery for core industries. The IPO aims to raise Rs 158 crores through a fresh issue of 9,405,000 equity shares priced at Rs 159-168 per share.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
IPO Details
The Diffusion Engineers IPO opens on September 26, 2024 and closes on September 30, 2024. Key details include:
- Issue Size: 9,405,000 shares (Rs 158.00 crores)
- Price Band: Rs 159 to Rs 168 per share
- Lot Size: 88 shares
- Listing: BSE, NSE
- Lead Manager: Unistone Capital Pvt Ltd
The issue includes a reservation of up to 50,000 shares for employees offered at a discount of Rs 8 to the issue price.
IPO ISSUE TIMELINE
1
IPO Open Date
Thursday, September 26, 2024
2
IPO Close Date
Monday, September 30, 2024
3
Basis of Allotment
Tuesday, October 1, 2024
4
Initiation of Refunds
Thursday, October 3, 2024
5
Credit of Shares to Demat
Thursday, October 3, 2024
6
Listing Date
Friday, October 4, 2024
7
Cut-off time for UPI mandate confirmation
5 PM on September 30, 2024
Company Overview
Diffusion Engineers Limited, founded in 1982, specializes in:
- Manufacturing welding consumables, wear plates and parts
- Producing heavy machinery for core industries
- Providing specialized repair and reconditioning services
- Trading in wear protection powders and welding/cutting machines
The company has four manufacturing units in Nagpur, Maharashtra. As of February 29, 2024, it had a team of over 130 qualified engineers.
Welding Consumables
Specialized welding electrodes and flux-cored wires produced by Diffusion Engineers for industrial applications.
Heavy Machinery
Custom-designed heavy machinery and equipment manufactured by Diffusion Engineers for core industrial sectors.
Financial Performance
Diffusion Engineers Limited has shown steady financial growth:
The company's revenue increased by 10% and profit after tax (PAT) rose by 39% between FY2023 and FY2024.
IPO Objectives
The company plans to utilize the net proceeds from the IPO for:
1
Expansion of Existing Facility
Funding capital expenditure for expanding the manufacturing facility at Khapri, Nagpur.
2
New Manufacturing Facility
Setting up a new manufacturing facility at MIDC, Hingna, Nagpur.
3
Working Capital
Funding working capital requirements of the company.
4
General Corporate Purposes
Allocation for general corporate expenses and growth initiatives.
IPO Subscription and Allotment
The Diffusion Engineers IPO subscription details as of September 26, 2024 11:17:10 AM (Day 1):
- Overall subscription: 1.84 times
- Retail category: 3.10 times
- QIB category: 0.00 times
- NII category: 1.22 times
- Employee category: 5.53 times
The basis of allotment is expected to be finalized on Tuesday, October 1, 2024. Shares will be credited to successful applicants' demat accounts by Thursday, October 3, 2024.
IPO Review
Diffusion Engineers operates in a promising sector with significant growth potential driven by infrastructure and industrialization investments. The company's focus on forward integration and diversification positions it well for future expansion. With a diverse customer base spanning domestic and international markets, Diffusion Engineers demonstrates its capacity to meet the needs of major players in industries such as cement, steel, and power.
The company is strategically expanding its manufacturing capacity to meet the growing demand for its products. Diffusion Engineers has shown strong growth in operating income, profitability, and EBITDA over the past three years. The issue is priced at a P/E of 11.7 times on the upper price band based on FY24 earnings, which is relatively lower compared to its peers.
Overall, the IPO presents an opportunity for both traders seeking short-term gains and investors looking for long-term capital appreciation.