Diffusion Engineers IPO to open on September 26

Diffusion Engineers Limited was established in 1982 and is a manufacturer of heavy machinery, wear plates and parts, and welding consumables for core industries. Units I, II, and III of Diffusion Engineers Limited, located in the Nagpur Industrial Area, Hingna, Nagpur, Maharashtra, and Unit IV, situated in Khapri (Uma), Nagpur, Maharashtra, are responsible for the processing and manufacturing of the products. Diffusion Engineers is an engineering solutions provider with a focus on serving clients in both domestic and foreign markets. Due to its extensive experience spanning more than 40 years, the company now offers wear plates, heavy engineering equipment, and specialized welding consumables that are designed for use in critical industries. It also deals in anti-wear powders, welding and cutting equipment, and customized repair and refurbishment services for heavy machinery. The business specializes in providing heavy machinery and equipment with specialized repair and reconditioning services. Beyond its core offerings, Diffusion Engineers also deals in welding and cutting equipment and anti-wear powders.

Diffusion Engineers is set to launch its IPO after 2 days:

Diffusion Engineers is set to launch its initial public offering (IPO) on September 26 and run through September 30. This offering, which totals 94.05 lakh shares, is solely a new equity sale.

The public offering of the company is expected to cost between Rs. 159 and Rs. 168 per share, or Rs. 158 crore. In a single lot, bidders may offer to purchase a minimum of 88 shares; additional shares will be offered in multiples of 88 after that. The issue is being handled through the book-building procedure, which distributes the offer proportionately to retail investors (35%), non-institutional investors (15%), and qualified institutional buyers (QIBs) (50%). The company intends to use the net proceeds of the initial public offering (IPO) to fund working capital requirements, capital expenditure requirements for the establishment of a new manufacturing site in Hingna, and various other corporate purposes.

Financial standing of Diffusion Engineers Limited:

In the fiscal year 2024, the company’s consolidated revenue from operations came to Rs. 285 crore, a 10% rise from the previous year. The main causes of this growth were increased trade activity, welding consumable sales, and wear plate sales. Additionally, during the same period, net profit rose by 39% annually to Rs. 30.8 crore.

Conclusion: Diffusion Engineers IPO plans to use the net fresh issue proceeds of Rs 71.38 crore for the expansion of its current manufacturing facility, Rs 30.38 crore for the establishment of a new manufacturing facility, and Rs 22 crore for working capital needs. The remaining IPO proceeds will be utilized for routine business needs.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.