Diffusion Engineers IPO: Open/Close Date, Price, Lot Size, Allotment & Subscription

Q: When will Diffusion Engineers Limited IPO open for subscription?

The IPO subscription window is not announced yet .

IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

Up to 9,847,000 equity shares aggregating up to ₹ [●] Million

Investor category and sub category

Qualified Institutional Buyers | Retail Individual Investors | Non-institutional Investor |

About Diffusion Engineers Ltd

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.

Industry Outlook:

India's GDP exhibited a remarkable growth trajectory, registering a 9.1% increase in fiscal 2022 after a contraction of 5.8% in fiscal 2021. This resilience positions the country favourably for sustained growth, with GDP expected to grow at 6.1% in 2023 and 6.3% in 2024, outpacing even China's growth, as per IMF forecasts.
The Asia-Pacific region holds the lion's share of around 41% in the global welding consumables market. Factors such as the availability of cost-effective manufacturing in countries like China and India attract global industrial players, thereby driving demand for welding consumables in the region.

Diffusion Engineers Limited IPO Details

Diffusion Engineers Limited IPO Dates

The exact dates are yet to be announced.

Diffusion Engineers Limited IPO Price Band

The Prize band is yet to be announced

Diffusion Engineers Limited IPO Lot Size

The lot size is yet to be announced.

Diffusion Engineers Limited IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

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.

Peer Details

The following are the listed peers of Diffusion Engineers Limited:

Ador Welding Limited
AIA Engineering Limited

How to Check the Allotment Status of the Diffusion Engineers Limited 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.
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Contact Details of Diffusion Engineers Limited 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	As at 30th June 2023	Year Ending on March 31, 2023 (Amount in ₹ millions)	Year Ending on March 31, 2022 (Amount in ₹ millions)	Year Ending on March 31, 2021 (Amount in ₹ millions)
Revenue from Operations (in ₹ Million)	658.46	2,548.76	2,045.89	1,552.63
Profit After Tax (PAT) (in ₹ Million)	62.55	221.45	170.46	116.63
Cash and Cash Equivalents (in ₹ Million)	25.88	45.29	30.61	46.79
Return on Net Worth (%)	4.31	16.86	15.10	11.64
Total Borrowings (in ₹ Million)	394.48	480.92	245.95	196.90
EBITDA (in ₹ Million)	106.40	347.97	275.22	227.00

Know before investing

Strengths

Diffusion Engineers Private Limited has strategically evolved from manufacturing welding consumables to providing comprehensive welding services and heavy equipment manufacturing. They've become an end-to-end solution provider, ensuring optimal performance and longevity of heavy equipment.
Diffusion Engineers is a vital part of the OEM ecosystem, serving a wide range of clients, including OEMs servicing significant participants in core industries such as the steel, power, and cement sectors. Strategic partnerships with OEMs and direct engagement with established customers underscore the company's expertise, reliability, and tailored solutions, enhancing its market presence and credibility.
The company's manufacturing units in Nagpur, Maharashtra, enjoy a strategic location advantage at the heart of the country, facilitating streamlined logistics operations and nationwide reach. Also, through subsidiaries and exports to over 25 countries, Diffusion Engineers is expanding its geographical footprint, tapping into new markets and diversifying its customer base for sustained growth and market resilience.

Risks

The company relies heavily on the domestic market for its sales, with a majority of revenues historically coming from local sales. Any downturn in the domestic market could dent the company's market share and financial performance.
All manufacturing facilities of the company are located in Nagpur, Maharashtra. Any localised social unrest, natural disaster, or disruption in production at these facilities could significantly impact the company's operations and financial condition.
Diffusion Engineers Private Limited's business performance is closely linked to the performance of certain other industries. Disruptions in the economic cycles and decreased demand in various sectors on a national and international level might have a negative impact on the earnings and financial health of the organisation.
The company is planning to establish new production facilities, which will involve a large financial outlay and operational risks. Delays or cost overruns in setting up these facilities, along with potential disruptions in the transportation of assets, could adversely affect financial performance. The company also faces challenges in obtaining necessary approvals and licences for the new facilities, which could further impact business operations and results.