IPO Details
Bidding Dates
26 Sep '24 - 30 Sep '24
Minimum Investment
₹14,784 / 1 Lot (88 Shares)
Price Range
₹159 - ₹168
Maximum Investment
₹192,192 / 13 Lot (1,144 Shares)
Retail Discount
To be announced
Issue Size
₹158.00 Cr
Investor category and sub category
Qualified Institutional Buyers | Retail Individual Investors | Non-institutional Investor | Eligible employees |IPO Dates
Important dates with respect to IPO allotment and listing
Opening Date
Sep 26, 2024
Closing Date
Sep 30, 2024
Basis of Allotment
Oct 1, 2024
Initiation of Refunds
Oct 1, 2024
Listing Date
Oct 4, 2024
About Diffusion Engineers IPO
Diffusion Engineers Limited is launching an IPO with a total issue size of ₹158.00 crore. This is a 100% fresh issue consisting of 0.94 crore equity shares. The IPO will open for subscription on September 26, 2024, and close on September 30, 2024, with the allotment date set for October 1, 2024. The shares are expected to be listed on the BSE and NSE on October 4, 2024.
The IPO price band is between ₹159 and ₹168 per share. Investors can apply with a minimum lot size of 88 shares, requiring a minimum investment of ₹14,784 for retail investors.
Small Non-Institutional Investors (sNII) must invest in a minimum of 14 lots (1,232 shares), totalling ₹2,06,976, while Big Non-Institutional Investors (bNII) must invest in a minimum of 68 lots (5,984 shares), totalling ₹10,05,312. Additionally, 50,000 shares are reserved for employees at a discount of ₹8 per share.
Industry Outlook:
- The welding consumables market in India, valued at ₹51 billion in FY24, is projected to grow to ₹64-66 billion by FY27, driven by infrastructure investments.
- India's wear plates market, estimated at ₹22 billion in FY24, is expected to grow at an 8-9% CAGR, reaching ₹28 billion by FY27, fueled by industrial growth.
Diffusion Engineers IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding capital expenditure requirements towards the expansion of our existing manufacturing facility at Khasra, Maharashtra, India (“Proposed Expansion”)
- Setting up of a new manufacturing facility located at Nagpur, Maharashtra (“Proposed Facility”)
- Funding working capital requirements of the company
- General corporate purposes
About Diffusion Engineers Limited
Founded in 1982, Diffusion Engineers Limited specialises in manufacturing welding consumables, wear plates, and heavy machinery for core industries. The company provides specialised repair and reconditioning services for heavy machinery and equipment and also trades in wear protection powders, welding, and cutting machines.
At its production facilities, Diffusion Engineers offers the Super Conditioning process, a surface treatment that enhances wear resistance, reduces stress, and improves the reparability of machine components, ultimately extending their service life and reducing production costs.
The company operates four manufacturing units in Nagpur, Maharashtra. Units I, II, and III are located in the Nagpur Industrial Area, Hingna, while Unit IV is situated at Khapri (Uma). Manufacturing activities are spread across the units, with Unit I producing specialised welding electrodes. Unit II focused on flux-cored wires and wear parts. Unit III provides coatings for abrasion and corrosion resistance, and Unit IV handles flux-cored wires, wear plates, and heavy engineering. As of February 2024, the company employed over 130 qualified engineers.
Peer Details
The companies considered by Diffusion Engineers as its peers include:
- Ador Welding Limited
- AIA Engineering Limited
How to Check the Allotment Status of the Diffusion Engineers IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Diffusion Engineers IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Diffusion Engineers IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Diffusion Engineers IPO
- Registered office: T-5 & T-6, Nagpur Industrial Area, MIDC, Hingna, Nagpur -440016 Maharashtra
- Phone: +91 9158317943
- E-mail: cs@diffusionengineers.com
IPO Financials
Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
---|---|---|---|
Total Income (in ₹ million) | 2,855.61 | 2,586.72 | 2,087.47 |
Profit After Tax (PAT) (in ₹ million) | 308.03 | 221.45 | 170.46 |
Current Ratio (x) | 1.89 | 1.70 | 1.69 |
Net Worth (in ₹ million) | 1,907.04 | 1,419.97 | 1,206.48 |
Total Borrowings (in ₹ million) | 344.35 | 480.92 | 245.95 |
Return on Equity (%) | 18.52% | 16.86% | 15.10% |
Return on Capital Employed (RoCE) (%) | 20.63% | 18.46% | 17.30% |
Earnings Per Share (in ₹) | 10.94 | 7.91 | 6.08 |
Know before investing
Strengths
6-
A synergistic business model with 90.92% revenue from integrated products.
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Serving major industries through 31 OEMs and 472 direct customers.
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Long-standing relationships with over 503 customers in FY24.
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Consistent financial performance with ₹2,571.26 million in revenue in FY24.
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Strategically located manufacturing units for efficient operations across India.
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Experienced management with nearly 20 years of industry expertise.
Risks
6-
Dependence on domestic sales, with 89.75% revenue from India.
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Negative cash flow from operations in fiscal 2023 at ₹47.37 million.
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All manufacturing units concentrated in Nagpur, Maharashtra, risking disruptions.
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75.28% of revenue comes from five industries, exposing cyclicality.
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Risks of delays in new facility setup impacting growth plans.
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High dependency on raw materials, 58.45% cost in fiscal 2024.
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Diffusion Engineers IPO FAQs
Diffusion Engineers IPO is a book built IPO. The IPO will be open from September 26, 2024, to September 30, 2024.
The Basis of Allotment will happen on Tuesday, October 1, 2024.
The IPO subscription window will open on September 26, 2024.
The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 88 shares.
The listing date for Diffusion Engineers is Friday, October 4, 2024.
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.
- Multiple Submissions: Use different Demat accounts to make multiple applications.
- Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
- Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
To read Diffusion Engineers’ financial statements, download the IPO’s RHP document.