Diffusion Engineers IPO is a book built issue of Rs 158.00 crores. The issue is entirely a fresh issue of 0.94 crore shares.
Diffusion Engineers IPO bidding opened for subscription on September 26, 2024 and will close on September 30, 2024. The allotment for the Diffusion Engineers IPO is expected to be finalized on Tuesday, October 1, 2024. Diffusion Engineers IPO will list on BSE, NSE with tentative listing date fixed as Friday, October 4, 2024.
Diffusion Engineers IPO price band is set at ₹159 to ₹168 per share. The minimum lot size for an application is 88 Shares. The minimum amount of investment required by retail investors is ₹14,784. The minimum lot size investment for sNII is 14 lots (1,232 shares), amounting to ₹206,976, and for bNII, it is 68 lots (5,984 shares), amounting to ₹1,005,312.
The issue includes a reservation of up to 50,000 shares for employees offered at a discount of Rs 8 to the issue price.
Unistone Capital Pvt Ltd is the book running lead manager of the Diffusion Engineers IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.
Refer to Diffusion Engineers IPO RHP for detailed information.
Diffusion Engineers IPO Details
| IPO Date | September 26, 2024 to September 30, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹159 to ₹168 per share |
| Lot Size | 88 Shares |
| Total Issue Size | 9,405,000 shares (aggregating up to ₹158.00 Cr) |
| Fresh Issue | 9,405,000 shares (aggregating up to ₹158.00 Cr) |
| Employee Discount | Rs 8 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 28,021,259 |
| Share holding post issue | 37,426,259 |
Diffusion Engineers IPO Reservation
Diffusion Engineers IPO offers 94,05,000 shares. 18,71,000 (19.89%) to QIB, 14,03,250 (14.92%) to NII, 32,74,250 (34.81%) to RII, 50,000 (0.53%) to employees and 28,06,500 (29.84%) to Anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 28,06,500 (29.84%) | NA |
| QIB Shares Offered | 18,71,000 (19.89%) | NA |
| NII (HNI) Shares Offered | 14,03,250 (14.92%) | |
| bNII > ₹10L | 9,35,500 (9.95%) | 759 |
| sNII < ₹10L | 4,67,750 (4.97%) | 379 |
| Retail Shares Offered | 32,74,250 (34.81%) | 37,207 |
| Employee Shares Offered | 50,000 (0.53%) | NA |
| Total Shares Offered | 94,05,000 (100%) |
Diffusion Engineers IPO Anchor Investors Details
Diffusion Engineers IPO raises Rs 47.15 crore from anchor investors. Diffusion Engineers IPO Anchor bid date is September 25, 2024. Diffusion Engineers IPO Anchor Investors list
| Bid Date | September 25, 2024 |
| Shares Offered | 2,806,500 |
| Anchor Portion Size (In Cr.) | 47.15 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 31, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 30, 2024 |
Diffusion Engineers IPO Timeline (Tentative Schedule)
Diffusion Engineers IPO opens on September 26, 2024, and closes on September 30, 2024.
| IPO Open Date | Thursday, September 26, 2024 |
| IPO Close Date | Monday, September 30, 2024 |
| Basis of Allotment | Tuesday, October 1, 2024 |
| Initiation of Refunds | Thursday, October 3, 2024 |
| Credit of Shares to Demat | Thursday, October 3, 2024 |
| Listing Date | Friday, October 4, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 30, 2024 |
Diffusion Engineers IPO Lot Size
Investors can bid for a minimum of 88 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 88 | ₹14,784 |
| Retail (Max) | 13 | 1144 | ₹192,192 |
| S-HNI (Min) | 14 | 1,232 | ₹206,976 |
| S-HNI (Max) | 67 | 5,896 | ₹990,528 |
| B-HNI (Min) | 68 | 5,984 | ₹1,005,312 |
| Lot Size Calculator | |||
Diffusion Engineers IPO Promoter Holding
Mr. Prashant Garg, Dr. Nitin Garg, and Ms. Chitra Garg are the company promoters.
| Share Holding Pre Issue | 93.10% |
| Share Holding Post Issue | 69.70% |
About Diffusion Engineers Limited
Founded in 1982, Diffusion Engineers Limited is active in the manufacture of welding consumables, wear plates and parts, and heavy machinery for core industries.
The company offers specialized repair and reconditioning services for heavy machinery and equipment. The company also trades in wear protection powders and welding and cutting machines. At its production facilities, the company offers the Super Conditioning process, a surface treatment for machine components that increases wear resistance, eliminates stresses, and improves reparability, ultimately extending service life and reducing production costs.
Diffusion Engineers Limited has four manufacturing units, of which Units I, II, and III are located at Nagpur Industrial Area, Hingna, Nagpur, Maharashtra, and Unit IV at Khapri (Uma), Nagpur, Maharashtra is responsible for the processing and manufacturing of the products. The manufacturing operations are spread across the various units as follows:
- Unit I: Welding electrodes for special purposes;
- Unit II: Flux cored wires, wear plates and wear parts through fabrication and machining;
- Unit III: Coatings for abrasion and corrosion resistance;
- Unit IV: Flux-cored wires (since the financial year 2024), wear plates, and heavy engineering.
As of February 29, 2024, the company had a team of over 130 qualified engineers.
Company Financials
Diffusion Engineers Limited Financial Information (Restated Consolidated)
Diffusion Engineers Limited’s revenue increased by 10% and profit after tax (PAT) rose by 39% between the financial year ending with March 31, 2024 and March 31, 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 275.59 | 230.34 | 189.55 | |||||||||||||||||||||||||||
| Revenue | 285.56 | 258.67 | 208.75 | |||||||||||||||||||||||||||
| Profit After Tax | 30.8 | 22.15 | 17.05 | |||||||||||||||||||||||||||
| Net Worth | 190.7 | 142 | 120.65 | |||||||||||||||||||||||||||
| Reserves and Surplus | 163.03 | 138.39 | 117.34 | |||||||||||||||||||||||||||
| Total Borrowing | 34.44 | 48.09 | 24.6 | |||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||
Key Performance Indicator
The market capitalization of Diffusion Engineers IPO is Rs 628.76 Cr.
KPI as of March 31, 2024.
| KPI | Values |
|---|---|
| ROE | 18.52% |
| ROCE | 20.63% |
| Debt/Equity | 0.18 |
| RoNW | 18.52% |
| P/BV | 2.47 |
| PAT Margin (%) | 10.79 |
Check Diffusion Engineers IPO Peer Comparison here.
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 10.99 | 8.23 |
| P/E (x) | 15.28 | 20.41 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of March 31, 2024 that is available in RHP.
Objects of the Issue (Diffusion Engineers IPO Objectives)
The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects:
- Funding capital expenditure requirements towards the expansion of existing manufacturing facility at Khasra No. 36, 38/1, 38/2, 38/3, Khapri (Uma), Nagpur- 441 501, Maharashtra, India (Proposed Expansion);
- Setting up of a new manufacturing facility located at Plot Nos. 33-B/1/1/ & 33-B/1/1/Part, MIDC, Hingna, Sonegaon District, Nagpur-440 016, Maharashtra (Proposed Facility);
- Funding working capital requirements of the Company; and
- General Corporate Purposes.
Diffusion Engineers IPO Review (May apply)
[Dilip Davda] The company is engaged in the manufacturing welding consumables, wear plates, wear parts and heavy engineering machinery for core industries. It posted steady growth in its top and bottom lines for the reported periods. Based on FY24 earnings, the issue appears fully priced. It is poised for bright prospects amidst mega spending on infra and industrialization. Though the issue appears fully priced, investors may park funds for medium to long term. Read detail review…
Diffusion Engineers IPO Subscription Status (Bidding Detail)
The Diffusion Engineers IPO is subscribed 13.63 times on September 27, 2024 12:03:10 PM (Day 2). The public issue subscribed 19.85 times in the retail category, 0.04 times in the QIB category, and 16.82 times in the NII category. Check Day by Day Subscription Details (Live Status) Reload Subscription
| Category | Subscription (times) | Shares Offered | Shares bid for |
|---|---|---|---|
| QIB | 0.04 | 18,71,000 | 73,568 |
| NII | 16.82 | 14,03,250 | 2,36,02,216 |
| bNII (bids above ₹10L) | 11.76 | 9,35,500 | 1,10,00,880 |
| sNII (bids below ₹10L) | 26.94 | 4,67,750 | 1,26,01,336 |
| Retail | 19.85 | 32,74,250 | 6,49,90,992 |
| Employee | 25.01 | 50,000 | 12,50,480 |
| Total | 13.63 | 65,98,500 | 8,99,17,256 |
Total Application : 829,775
Diffusion Engineers IPO Prospectus
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Diffusion Engineers Limited Contact Details
Diffusion Engineers Limited
T-5 & T-6,
Nagpur Industrial Area, MIDC,
Hingna, Nagpur – 440016
Phone: +91 9158317943
Email: cs@diffusionengineers.com
Website: https://www.diffusionengineers.com/
Diffusion Engineers IPO Registrar
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/ipo_status.html
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