Diffusion Engineers is scheduled to hit the market on September 26, 2024 and close on September 30, 2024. Diffusion Engineers plans to raise around ₹158.00 Cr through an IPO with a sale of up to 9,405,000 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.
Diffusion Engineers Limited, founded in 1982, makes products like welding consumables, wear plates, and heavy machinery for key industries. They also provide repair and reconditioning services for heavy equipment. Additionally, the company sells wear protection powders and machines for welding and cutting. At their production facilities, they use a special process called Super Conditioning to treat machine parts, which helps increase their resistance to wear, reduces stress, improves repairability, and ultimately extends their life while lowering production costs.
The company has four manufacturing units. Units I, II, and III are located in the Nagpur Industrial Area, while Unit IV is in Khapri (Uma), Nagpur. Each unit focuses on different products: Unit I produces welding electrodes for special purposes; Unit II makes flux-cored wires, wear plates, and parts through fabrication and machining; Unit III offers coatings for abrasion and corrosion resistance; and Unit IV, starting from the financial year 2024, will focus on flux-cored wires, wear plates, and heavy engineering. As of February 29, 2024, over 130 qualified engineers work with the company.
Diffusion Engineers IPO Details
Diffusion Engineers IPO opens on September 26, 2024, and closes on September 30, 2024. The Listing date for Diffusion Engineers IPO is on October 04, 2024. The price band for IPO is ₹159 to ₹168 per share and lot size of 88 Shares.
| IPO Date | September 26, 2024 to September 30, 2024 |
| Listing Date | October 04, 2024 |
| Price | ₹159 to ₹168 per share |
| Lot Size | 88 Shares |
| Issue Size | ₹158.00 Cr |
| Face Value | ₹10 per share |
Diffusion Engineers IPO Tentative Timetable
Diffusion Engineers opening date is September 26, 2024 and close date is September 30, 2024. The IPO allotment date is October 01, 2024. Therefund initiation of IPO is on October 03, 2024. The credit of shares in demat account is on October 03, 2024. The listing date is on October 04, 2024.
| Event | Date |
|---|---|
| IPO Opening | September 26, 2024 |
| IPO Closing | September 30, 2024 |
| IPO Allotment Date | October 01, 2024 |
| Refund Initiation | October 03, 2024 |
| Shares Credit to Demat | October 03, 2024 |
| Lisiting Date | October 04, 2024 |
Diffusion Engineers IPO Lot Size
Lot Size of this IPO is 88 shares. A retail-individual investor can apply for up to 13 lots (1144 shares or ₹192,192).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 88 | ₹14,784 |
| Retail(Maximum) | 13 | 1144 | ₹192,192 |
| S-HNI (Minimum) | 14 | 1,232 | ₹206,976 |
| B-HNI (Minimum) | 68 | 5,984 | ₹1,005,312 |
Diffusion Engineers IPO Promoter Holding
| Pre Issue Share Holding | 93.10% |
| Post Issue Share Holding |
Diffusion Engineers IPO Review
The company is launching its first book building IPO, which will offer 9,405,000 new equity shares at a price of ₹10 each. The total value of the shares at the highest price is ₹158.00 crore.
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total income/net profit of Rs. 208.75 cr. / Rs. 17.05 cr. (FY22), Rs. 258.67 cr. / Rs. 22.15 cr. (FY23), and Rs. 285.56 cr. / Rs. 30.80 cr. (FY24).
For the last three fiscals, the company has reported an average EPS of Rs. 9.12, and an average RoNW of 17.40%. The issue is priced at a P/BV of 2.47 based on its NAV of Rs. 68.06 as of March 31, 2024, but the RHP and the IPO price band ad is missing its post-IPO NAV data.
If we attribute FY24 annualized earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 20.41, and based on FY23 earnings, the P/E stands at 28.38. The issue relatively appears fully priced.
The company reported PAT margins of 8.17% (FY22), 8.56% (FY23), 10.79% (FY24), and RoCE margins of 17.30%, 18.46%, 20.63% for the referred periods, respectively.
The BRLM linked to this issue has managed 16 issues over the last three financial years (including the current one), with 8 on the mainboard and 8 for SMEs. Notably, none of these issues closed below the offer price when they started trading.
The company makes welding materials, wear plates, wear parts, and heavy machinery for important industries. It has shown consistent growth in both sales and profits in the recent periods. Looking at the earnings for FY24, the stock seems to be priced fairly. However, it has good potential for growth due to large investments in infrastructure and industrial development. Even though the stock seems fairly priced, investors might consider investing for the medium to long term.
Diffusion Engineers IPO Subscription Status (Bidding Details)
Table not foundDiffusion Engineers IPO Broker Recommendations
- Capital Market: To be updated soon
- Anand Rathi: To be updated soon
- SMC Global: To be updated soon
- Arihant Capital: To be updated soon
Diffusion Engineers IPO FAQs
What is Diffusion Engineers IPO?
Diffusion Engineers is issuing 9,405,000 equity shares with a face value of ₹10 each, totaling up to ₹158.00 Cr. The shares are being offered at a price of ₹159 to ₹168 each, with a minimum order quantity of 88 shares.
Bigshare Services Pvt Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Diffusion Engineers IPO will open?
Diffusion Engineers will open on September 26, 2024 for QIB, NII, and Retail Investors.
When Diffusion Engineers IPO will end?
Diffusion Engineers will end on September 30, 2024.
What is Diffusion Engineers IPO Size?
Diffusion Engineers IPO size is ₹158.00 Cr.
What is Diffusion Engineers IPO Price Band?
Diffusion Engineers price band is ₹159 to ₹168 per share.
What is Diffusion Engineers IPO Allotment Date?
Diffusion Engineers allotment date is October 01, 2024.
What is Diffusion Engineers IPO Listing Date?
Diffusion Engineers listing date is October 04, 2024. The IPO is to be listed on BSE and NSE.
How to Diffusion Engineers IPO through Zerodha?
To apply for the IPO “Diffusion Engineers” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Diffusion Engineers IPO through Upstox?
To apply for the IPO “Diffusion Engineers” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Diffusion Engineers IPO Allotment Status?
For Diffusion Engineers IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Diffusion Engineers IPO GMP?
You can check out here: Diffusion Engineers IPO GMP. Check all IPO GMP here.