Diffusion Engineers Ltd. was incorporated on November 5, 1982. The company manufactures welding consumables, wear plates, and heavy engineering machinery for core industries, and trades in anti-wear powders and welding machinery. It offers a super conditioning process that enhances wear resistance, reduces stress, and improves repairability, extending component lifespan and lowering production costs.
| Bidding Dates |
|---|
| 26 Sep 2024 - 30 Sep 2024 |
| Subscription |
|---|
| 114.49x Oversubscribed |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| ₹13,992 | 1 | 13 | 88 | 9.4 M | ₹159 - ₹168 | 69.7 % | ₹1495.4 M - ₹1580.0 M | RHP DOC |
Diffusion Engineers Ltd. IPO SUBSCRIPTION STATUS
30 Sep '24Diffusion Engineers Ltd. IPO overall subscription rate was 114.49 times the total available shares
Diffusion Engineers Ltd. IPO retail subscription rate was 85.61 times in the retail segment
Diffusion Engineers Ltd. IPO non-institutional investor subscription rate was 207.6 times in the non-institutional investor category
Diffusion Engineers Ltd. IPO Qualified Institutional Bidder subscription rate was 95.74 times the available shares for Qualified Institutional Bidder
Diffusion Engineers Ltd. IPO Employees subscription rate was 95.03 times in the Employees category
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers | Employees |
|---|---|---|---|---|
| Category Reservation | 35% | 15% | 50% | - |
30 Sep 2024 (Day 3) | 85.61x | 207.6x | 95.74x | 95.03x |
27 Sep 2024 (Day 2) | 33.91x | 47.08x | 0.28x | 36.64x |
26 Sep 2024 (Day 1) | 11.24x | 6.8x | 0.03x | 16.67x |
Diffusion Engineers Ltd. FINANCIALS
| Period | Net Profit (Rs in millions) | Revenue from Operations (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) | Margins |
| FY24 | 308.0 | 2,781.4 | 391.0 | -12.1 | 17.0% |
| FY23 | 221.5 | 2,548.8 | -47.4 | 150.5 | 13.7% |
| FY22 | 170.5 | 2,045.9 | 110.5 | 95.1 | 13.5% |
Diffusion Engineers Ltd. IPO SUBSCRIPTION STATUS DETAILS
Diffusion Engineers Ltd. had 9.4 M shares on offer
Diffusion Engineers Ltd. IPO offer price was in the range ₹159 - ₹168
Diffusion Engineers Ltd. IPO minimum Investment was ₹13992
Diffusion Engineers Ltd. IPO issue size was ₹ 1495.4 M - ₹ 1580.0 M
Diffusion Engineers Ltd. had a minimum lot size of 88 Shares per application
Diffusion Engineers Ltd. NUMBER OF SHARES ON OFFER
Diffusion Engineers Ltd. IPO IMPORTANT DATES
| Issue Open Date | 26 Sep 2024 |
| Issue close Date | 30 Sep 2024 |
| Allotment Date | 01 Oct 2024 |
| Refund Date | 03 Oct 2024 |
| Demat Account Credit Date | 03 Oct 2024 |
| Listing Date | 04 Oct 2024 |
| Listing on Exchange(s) | NSE and BSE |
| Diffusion Engineers Ltd. Allotment Status | Exchange |
Diffusion Engineers Ltd. IPO subscription opened on 26 Sep 2024, and closed on 30 Sep 2024
IPO allotment for Diffusion Engineers Ltd. was finalized on Tuesday, 01 Oct 2024
IPO listing for Diffusion Engineers Ltd. was on NSE and BSE on Friday, 04 Oct 2024
Diffusion Engineers Ltd. IPO LISTING GAINS
| Issue Price (adjusted) | 168.0 |
| Listing Open Price | 193.5 |
| Listing Close Price | 203.2 |
| Listing Gain% | 15.2% |
| Current Gain% | 162.5% |
Diffusion Engineers Ltd. Peer
| Stock | Stock Price | Market Cap (Rs crore) | PE TTM | PEG TTM | PS TTM | ROE% | ROA% | Annual Revenue (Rs crore) | Annual Revenue Growth % | Annual Net Profit (Rs crore) | Annual Net Profit Growth % | EPS TTM | EPS TTM Growth % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Diffusion Engineers Ltd. | 441 | 1650.5 | 32.8 | 0.8 | 4.1 | 12.4 | 9.8 | 421.6 | 22.4 | 50.3 | 40.1 | 13.4 | 40.1 |
| Esab India Ltd. | 5631.5 | 8668.6 | 41.9 | 2.4 | 5.7 | 48.1 | 29.6 | 1514.2 | 9.6 | 206.7 | 17.8 | 134.3 | 17.8 |
| Shivalik Bimetal Controls Ltd. | 920.9 | 5304.8 | 50 | 1.7 | 8.6 | 19.9 | 15.1 | 583.1 | 11.9 | 95.9 | 24.4 | 18.4 | 29.3 |
| Ador Welding Ltd. | 1483.4 | 2581.5 | 22.7 | 0.1 | 2.2 | 14.8 | 9.8 | 1158.2 | 1.5 | 82 | 36.5 | 65.2 | 213.2 |
| Gala Precision Engineering Ltd. | 1036.4 | 1328.3 | 35.8 | 1 | 4.1 | 12.1 | 9.5 | 319.9 | 32.1 | 35.5 | 32.2 | 29 | 37.2 |
| Foseco Crucible (India) Ltd. | 1567 | 877.5 | 37.8 | -4.4 | 4.9 | 13.4 | 11.1 | 183 | 0.5 | 18.7 | -32 | 41.5 | -8.6 |
Diffusion Engineers Ltd. INFORMATION ON IPO ISSUE
About Diffusion Engineers Ltd.
Diffusion Engineers Ltd. was incorporated on November 5, 1982. The company manufactures welding consumables, wear plates, and heavy engineering machinery for core industries, and trades in anti-wear powders and welding machinery. It offers a super conditioning process that enhances wear resistance, reduces stress, and improves repairability, extending component lifespan and lowering production costs.
Object of the Issue
- Fund capital expenditure requirements for the expansion of our existing manufacturing facility at Khasra in Nagpur
- Establish a new manufacturing facility in Hingna, Sonegaon District, Nagpur
- Finance the working capital requirements of the company
- General corporate purposes
Diffusion Engineers Ltd. - PROMOTERS
| Name |
|---|
| Prashant Garg |
| Nitin Garg |
| Chitra Garg |
Diffusion Engineers Ltd. Lead Manager of the Issue
Unistone Capital Private Limited
mb@unistonecapital.com
Diffusion Engineers Ltd. Registrar to the Offer
Bigshare Services Private Limited
ipo@bigshareonline.com
Diffusion Engineers Ltd. Strengths
Synergistic business models
Forward integration enhances the company's production efficiency and competitive advantage, reduces product costs, provides better control over the supply of raw materials, and decreases dependency on third parties for operations
Locational advantage
The company's central location is in Nagpur, providing easy access to industries nationwide, and enabling streamlined logistics for procurement and timely deliveries. This positioning allows efficient service to diverse sectors, including both urban and remote areas
Consistent financial performance
The company has evolved from a single-product to a multi-product manufacturing entity on a standalone basis. It has consistently demonstrated growth in terms of revenues and profitability
Diffusion Engineers Ltd. Risks
Dependent on domestic market
The company is increasingly reliant on the domestic market for its sales, and any downturn could significantly impact its market share
Absence of long-term agreements
The company lacks long-term agreements with suppliers for raw materials, which may hinder timely procurement of quality materials at reasonable costs, negatively impacting its business and financial health
Commercialization and market development
The commercialization and market development of new products may take longer than anticipated and carry unforeseen risks. Failure to diversify product offerings could hinder growth and negatively affect profitability
IPO FAQs
The promoters of the company are Prashant Garg, Nitin Garg and Chitra Garg.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.
The price band of the IPO is Rs 159.0 - 168.0.
The IPO application opens on Sep 26, 2024 and closes on Sep 30, 2024.
The minimum lot size for the IPO is 88. The maximum lot size for the IPO is 1144.
For all category investors, the minimum application amount for this IPO is Rs. 13,992.0, the maximum value for this IPO is Rs 192,192.0.
This IPO will be allotted on Oct 01, 2024.
The refund will be credited to your account on Oct 03, 2024.
The allotted shares will be credited to your demat on Oct 03, 2024.
Diffusion Engineers Ltd.’s shares listed on the stock exchanges on Oct 04, 2024.