The Diffusion Engineers IPO will open on September 26, 2024, and close on September 30, 2024. This Book Built Offer aims to raise approximately ₹158 crores, consisting of a fresh issue of ₹158 crores and an offer for sale of up to [.] equity shares with a face value of ₹10 each.
The price band for the Diffusion Engineers IPO is set between ₹159 and ₹168 per share, with a retail quota of 35%, QIB at 50%, and HNI also at 50%. The shares are expected to list on the NSE and BSE on October 4, 2024, with allotments announced on October 1, 2024.
In its latest financials, the company reported revenue of ₹285.56 crores for 2024, an increase from ₹258.67 crores in 2023. Profits also rose to ₹30.80 crores in 2024, compared to ₹22.16 crores in 2023. Given these positive financial indicators, long-term investors may find this IPO appealing.
Objects of the Issue:
Funding capital expenditure for the proposed expansion of the existing manufacturing facility at Unit IV
Establishing a new manufacturing facility in Hingna, Sonegaon District, Nagpur, Maharashtra (“Proposed Facility”)
Supporting the company’s working capital requirements
General corporate purposes
Diffusion Engineers IPO Details
| IPO Open Date: | September 26, 2024 |
| IPO Close Date: | September 30, 2024 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹159 to ₹168 Per Share |
| Issue Size: | Approx ₹158.00 Crores |
| Fresh Issue: | Approx ₹158.00 Crores |
| Issue Type: | Book Built Issue |
| IPO Listing: | BSE & NSE |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
| Employee Discount: | ₹8 per share |
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Diffusion Engineers IPO Market Lot:
The minimum market lot for the Diffusion Engineers IPO is 88 shares, requiring an application amount of ₹14,784. Retail investors can apply for up to 13 lots, totaling 1,144 shares or ₹192,192.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 88 | ₹ 14,784 |
| Retail Maximum | 13 | 1,144 | ₹ 1,92,192 |
| S-HNI Minimum | 14 | 1,232 | ₹ 2,06,976 |
| B-HNI Minimum | 68 | 5,984 | ₹ 10,05,312 |
Diffusion Engineers IPO Dates:
The Diffusion Engineers IPO will open on September 26 and close on September 30. Allotments will be finalized on October 1, with the IPO expected to list on October 4.
| IPO Open Date: | September 27, 2024 |
| IPO Close Date: | September 29, 2024 |
| Basis of Allotment: | October 1, 2024 |
| Refunds: | October 3, 2024 |
| Credit to Demat Account: | October 3, 2024 |
| IPO Listing Date: | October 4, 2024 |
Promoters of Diffusion Engineers:
The promoters of Diffusion Engineers are Prashant Garg, Dr. Nitin Garg, and Chitra Garg.
About Diffusion Engineers:
Diffusion Engineers Limited is located in the T-5 & T-6 area of the Nagpur Industrial Area, MIDC, Hingna, Nagpur – 440016, Maharashtra. The company specializes in manufacturing welding consumables, wear plates, wear parts, and heavy engineering machinery for core industries.
With over four decades of experience, Diffusion Engineers is committed to providing specialized repair and reconditioning services for heavy machinery and equipment. Additionally, the company is involved in trading anti-wear powders and welding and cutting machinery.
Diffusion Engineers has developed a synergistic system of forward integration, allowing them to manufacture special-purpose electrodes and flux-cored wires used in producing wear resistance plates (commonly known as wear plates). The company operates four manufacturing units: Units I, II, and III are located in the Nagpur Industrial Area, Hingna, Nagpur – 440 016, while Unit IV is situated in Khapri (Uma), Nagpur – 441 501, for processing and manufacturing its products.
Diffusion Engineers Financial Report:
In 2024, the company reported revenue of ₹285.56 crores, up from ₹258.67 crores in 2023. Profits also increased to ₹30.80 crores in 2024, compared to ₹22.16 crores in 2023.
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
| 2022 | ₹ 208.75 | ₹ 187.65 | ₹ 17.05 | ₹ 189.55 |
| 2023 | ₹ 258.67 | ₹ 233.14 | ₹ 22.15 | ₹ 230.34 |
| 2024 | ₹ 285.56 | ₹ 245.58 | ₹ 30.80 | ₹ 275.59 |
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Diffusion Engineers IPO Valuation – FY2024
Check Diffusion Engineers IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| KPI | Values |
| ROE: | 18.52% |
| ROCE: | 20.63% |
| EBITDA Margin: | 17.04% |
| PAT Margin: | 10.79% |
| Debt to equity ratio: | 0.18 |
| Earning Per Share (EPS): | ₹10.94 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 18.52% |
| Net Asset Value (NAV): | ₹ 68.06 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Ador Welding Limited | 46.46 | 29.01 | 18.43% | 266.49 | 8,83.83 Cr. |
| AIA Engineering Limited | 120.4 | 35.88 | 18.41% | 705.86 | 48,53.76 Cr. |
Diffusion Engineers IPO Registrar:
- Bigshare Services Private Limited
- Email: ipo@bigshareonline.com
- Telephone: +91 22-6263 8200
- Website: www.bigshareonline.com
IPO Lead Manager (Merchant Banker):
Unistone Capital Private Limited
Company Address:
- Diffusion Engineers Limited
- T-5 & T-6, Nagpur Industrial Area, MIDC, Hingna,
- Nagpur – 440016, Maharashtra
- Phone: +91 9158317943
- Email: cs@diffusionengineers.com
- Website: www.diffusionengineers.com
Diffusion Engineers IPO FAQs
What is the Diffusion Engineers IPO?
The Diffusion Engineers IPO is a main-board IPO aiming to raise ₹158 crores. The issue is priced between ₹159 and ₹168 per equity share and will be listed on the BSE and NSE.
When will the Diffusion Engineers IPO open for subscription?
The IPO will open on September 26, 2024, for QIB, NII, and retail investors, and will close on September 30, 2024.
What is the investor portion for the Diffusion Engineers IPO?
The allocation for investors is as follows: 50% for QIB, 15% for NII, and 35% for retail investors.
How can I apply for the Diffusion Engineers IPO?
You can apply for the Diffusion Engineers IPO online via ASBA through your bank account. You can also apply via UPI through your stock brokers or fill out an offline form with your broker.
What is the issue size of the Diffusion Engineers IPO?
The issue size of the Diffusion Engineers IPO is ₹158 crores.
What is the price band for the Diffusion Engineers IPO?
The price band for the Diffusion Engineers IPO is set at ₹159 to ₹168.
