Diffusion Engineers is engaged in the business of providing engineering solutions to customers both in domestic and international market. The Company has been in existence for over four decades and provides a wide range of products and services including manufacture of special welding consumables, wear plates and heavy engineering equipment for core industries and provide special and customized repairs and reconditioning services of heavy machinery and equipment.
Diffusion Engineers, an Book Built Issue amounting to ₹158 Crores, consisting entirely of Fresh Issue of 94.05 Lakh Shares. The subscription period for the Diffusion Engineers IPO opens on September 26, 2024, and closes on September 30, 2024. The allotment is expected to be finalized on or about Tuesday, October 01, 2024, and the shares will be listed on the NSE and BSE with a tentative listing date set on or about Friday, October 04, 2024.
The Share price band of Diffusion Engineers IPO is set at ₹159 to ₹168 equity per share, with a minimum lot size of 88 shares. Retail investors are required to invest a minimum of ₹14,784, while the minimum investment for High-Net-Worth Individuals (HNIs) is 14 lots (1,232 shares), amounting to ₹2,06,976.
Unistone Capital Private Limited is the book-running lead manager, while Bigshare Services Private Limited is the registrar for the Issue.
Diffusion Engineers Limited IPO GMP Today
The Grey Market Premium of Diffusion Engineers Limited IPO is expected to be ₹62 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.
Diffusion Engineers Limited IPO Live Subscription Status Today: Real-Time Updates
As of 05:35 PM on 30 September 2024, the Diffusion Energies Limited IPO live subscription status shows that the IPO subscribed 114.49 times on its Third day of subscription period. Check the Diffusion Energies Limited IPO Live Subscription Status Today at BSE.
Diffusion Engineers Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online
Diffusion Engineers IPO allotment date is Tuesday, October 01, 2024. Diffusion Engineers IPO Allotment will be out on Tuesday, October 01, 2024 and will be live on Registrar Website from the allotment date. Check Diffusion Engineers Limited IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Diffusion Engineers Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.
Objectives of Diffusion Engineers Limited IPO
Diffusion Engineers IPO Proceeds from the Fresh Issue will be utilized towards the following objects :
1. ₹ 713.80 Million for Funding capital expenditure requirements towards Proposed Expansion of our existing manufacturing facility
2. ₹ 303.85 Million for Setting up of a new manufacturing facility at Hingna, Sonegaon District, Nagpur, Maharashtra (“Proposed Facility”)
3. ₹ 220.00 Million for Funding working capital requirements of the Company
4. General Corporate Purposes
Refer to Diffusion Engineers Limited RHP and Price Band Advertisement for more details about the Company.
The Finance Saathi IPO List 2024 - Mainline and SME provides latest IPO information, latest IPO news, Upcoming IPO News, IPO Details, subscription status, IPO GMP and IPO Review of Upcoming IPO, Active IPO, and Listed IPOs at one place. Check latest IPO Review & analysis, Live GMP today, Live Subscription Status Today, Share Price, Financial Information, latest IPO news, Upcoming IPO News before applying in the IPO.
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The current active IPO is WOL 3D India Limited, Rappid Valves (India) Limited, Manba Finance Limited, Avi Ansh Textiles Limited, Phoenix Overseas Limited, BikeWo GreenTech Limited, SD Retail Limited.
Diffusion Engineers IPO Details |
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| IPO Date | September 26, 2024 to September 30, 2024 | ||||||||||
| Listing Date | October 04, 2024 | ||||||||||
| Face Value | ₹ 10 Per Share | ||||||||||
| Price | ₹159 - ₹168 Per Share | ||||||||||
| Lot Size | 88 Equity Shares | ||||||||||
| Total Issue Size | ₹ 158 Crore | ||||||||||
| Fresh Issue | 94,05,000 Equity Shares of face value of ₹10 each (aggregating up to ₹158 Cr) | ||||||||||
| Offer for Sale | Nil | ||||||||||
| Issue Type | 100% Book Built Issue IPO | ||||||||||
| Listing At | BSE & NSE | ||||||||||
| Share holding pre issue | 2,80,21,259 | ||||||||||
| Share holding post issue | 3,74,26,259 | ||||||||||
Diffusion Engineers IPO Lot Size |
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| Application | Lots | Shares | Amount | ||||||||
| Retail (Min) | 1 | 88 Equity Shares | ₹14,784 | ||||||||
| Retail (Max) | 13 | 1144 Equity Shares | ₹1,92,192 | ||||||||
| S-HNI (Min) | 14 | 1232 Equity Shares | ₹206976 | ||||||||
| S-HNI (Min) | 67 | 5896 Equity Shares | ₹9,90,528 | ||||||||
| B-HNI (Min) | 68 | 5984 Equity Shares | ₹10,05,312 | ||||||||
Diffusion Engineers IPO Timeline (Tentative Schedule) |
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| IPO Open Date | Thursday, September 26, 2024 | ||||||||||
| IPO Close Date | Monday, September 30, 2024 | ||||||||||
| Basis of Allotment | Tuesday, October 01, 2024 | ||||||||||
| Initiation of Refunds | Thursday, October 03, 2024 | ||||||||||
| Credit of Shares to Demat | Thursday, October 03, 2024 | ||||||||||
| Listing Date | Friday, October 04, 2024 | ||||||||||
| Cut-off time for UPI mandate confirmation | Before 5 PM on 30 September 2024 | ||||||||||
Diffusion Engineers IPO Reservation |
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| Investor Category | Shares Offered | Reservation % | |||||||||
| QIB Shares Offered | 93,55,000 Equity Shares | Not More than 50% of the Net Issue | |||||||||
| NII (HNI) Shares Offered | 14,03,250 Equity Shares | Not Less than 15% of the Net Issue | |||||||||
| Retail Shares Offered | 32,74,250 Equity Shares | Not Less than 35% of the Net Issue | |||||||||
| Employee Reservation | 50,000 Equity Shares | Not More than 0.53% of the Issue | |||||||||
Diffusion Engineers IPO Promoter Holding |
|||||||||||
| Share Holding Pre Issue | 93.10% | ||||||||||
| Share Holding Post Issue | 69.70% | ||||||||||
Diffusion Engineers IPO Subscription Status |
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| Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed | ||||||||
| Qualified Institutional Buyers (QIBs) | 18,71,000 Equity Shares | 17,91,21,712 | 95.74 | ||||||||
| Non Institutional Investors (NIIs) | 14,03,250 Equity Shares | 29,13,15,112 | 207.60 | ||||||||
| Retail Individual Investors (RIIs) | 32,74,250 Equity Shares | 28,02,95,752 | 85.61 | ||||||||
| Employee Reservation | 50,000 Equity Shares | 47,51,824 | 95.04 | ||||||||
| Total | 65,98,500 Equity Shares | 75,54,84,400 | 114.49 | ||||||||
Diffusion Engineers specializes in manufacturing welding consumables, wear plates, and heavy engineering machinery for core industries such as cement, steel, power, and mining. With over 40 years of experience, the company also provides repair and reconditioning services for heavy machinery and equipment. It engages in trading anti-wear powders and welding/cutting machinery, and offers a super conditioning process that enhances the wear resistance of machine components, extending their lifespan and reducing production costs.
The company's product line up is enhanced by a forward integration system, where it produces special-purpose electrodes and flux-cored wires, which are then used in the manufacturing of wear plates. These wear plates are key components in heavy industrial equipment. This integrated system enables production efficiency, cost reduction, and reduced dependency on third-party suppliers.
In terms of market data, the welding consumables market in India was valued at ₹51 billion in fiscal 2024 and is expected to reach ₹64-66 billion by fiscal 2027, driven by rising infrastructure investment. Similarly, the wear plates market is growing at a CAGR of 8-9%, expected to reach ₹28 billion by 2027.
The company operates four manufacturing units in Nagpur, Maharashtra, which produce welding electrodes, flux-cored wires, wear plates, and heavy engineering machinery. It emphasizes R&D and holds multiple certifications (ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, etc.) to ensure quality and environmental safety.
With a strong presence in both domestic and international markets, the company has seen significant growth in revenue and profitability over recent years. It is also expanding its product lines and looking to add corrosion and abrasion-resistant powders to its offerings. The company exports to countries like Singapore, UAE, USA, UK, and more.
The company deals in following products:-
1. Welding and Anti-wear Consumables
2. Wear Plates/Wear Parts
3. Heavy Engineering Equipment
4. Trading of Thermal Spray Powder and Welding Equipment
Indian Welding Consumables Industry
The welding consumables market in India is projected to grow from ₹51 billion in FY24 to ₹64-66 billion by FY27, driven by infrastructure investments. Key products include filler wires and welding electrodes, essential for creating strong metal bonds in sectors like construction, automotive, and energy.
Indian Wear Plates Market
India's wear plates market is estimated at ₹22 billion in FY24, growing to ₹28 billion by FY27, with an 8-9% CAGR. The sector is largely supplied by domestic production, driven by advancements in materials and rising demand from OEMs, particularly in mining and construction.
Heavy Engineering Capital Goods Industry
Valued at ₹3,100-3,200 billion in FY24, this industry encompasses the manufacturing of machinery for various sectors, including power and petrochemicals. Continued infrastructure development and industrial growth are key factors propelling this market.
Indian Steel Industry
The steel sector experienced a 13.3% increase in demand in FY24, primarily fuelled by government infrastructure projects. Consumption is projected to moderate to 7-8% in FY25, with the building and construction sector being the largest consumer, accounting for 30-35% of total demand.
Indian Cement Industry
In FY24, cement demand reached 445 million tonnes, with an 11.5% year-on-year increase. Growth is anticipated to continue at 7-8% in FY25, driven by housing and infrastructure projects, alongside substantial capital expenditure in capacity expansion.
Indian Power Industry
Power demand in India is expected to grow by 5.5-6.5% in FY25, with significant investments projected in renewable energy. The power sector is set to attract ₹23-24 trillion in investments between FY2025-2029, bolstered by government initiatives and infrastructure projects.
Indian Sugar Industry
The sugar industry supports around 50 million farmers and is projected to see a moderate consumption growth of 2% in Sugar Season 2025. Industrial consumption is expected to rise by 3%, driven by changing food habits and the HORECA segment.
Indian Defense Industry
The Indian government is prioritizing indigenous defense production through increased FDI limits and streamlined licensing reforms. These initiatives aim to enhance domestic manufacturing, innovation, and job creation in the defense sector.
Diffusion Engineers Limited Competitive Strengths
1. Synergistic business models focused on forward integration
2. Serving industry major players directly as well as through OEMs
3. Long-standing relationships with customers across industries
4. Consistent financial performance
5. Experienced promoters and strong management team
6. Strategically located manufacturing facilities
Diffusion Engineers Limited Strategies
1. Strategic expansion by venturing into nickel, cobalt and iron-based powder manufacturing for enhanced welding consumables portfolio
2. Expanding our geographical reach
3. Strategic Leasing and Maintenance Business Model for Heavy Equipment
4. Diversifying our Anti Wear Solutions and Heavy Engineering Equipment business into new industries
Diffusion Engineers Limited Risk Factors and Concerns
1. Company is increasingly dependent on a domestic market for its sales and any a downturn in it could dent our market share.
2. Company had negative cash flows during certain fiscal years
3. Business is dependent on the performance of certain other industries
4. Business is working capital intensive.
| Period Ended | 31 Mar 24 | 31 Mar 23 | 31 Mar 22 |
|---|---|---|---|
| Reserve of Surplus | 1626.83 | 1382.60 | 1169.11 |
| Total Assets | 2755.85 | 2303.44 | 1895.46 |
| Total Borrowings | 344.35 | 480.92 | 245.95 |
| Fixed Assets | 905.71 | 632.76 | 601.08 |
| Cash | 78.13 | 45.29 | 30.61 |
| Net Borrowing | 266.22 | 435.63 | 215.34 |
| Revenue | 2855.61 | 2586.72 | 2087.47 |
| EBITDA | 462.84 | 316.73 | 266.46 |
| PAT | 308.03 | 221.45 | 170.46 |
| EPS | 10.94 | 7.91 | 6.08 |
Note 1:- ROE & ROCE calculation in KPI is based on 31st Mar, 2024 Data, given in RHP.
Note 2:- Pre EPS and Post EPS calculation in KPI is based (PAT) on 31st Mar, 2024 Data, given in RHP.
Note 3:- RoNW calculation in KPI is based on 31st Mar, Data, given in RHP.
Note 4:- Price to Book Value calculation in KPI is based on Cap Price Post Issue/Offer, given in Business Standard.
Key Performance Indicator |
|||||||||||
| KPI | Values | ||||||||||
| EPS Pre IPO (Rs.) | ₹ 10.94 | ||||||||||
| EPS Post IPO (Rs.) | ₹ 8.23 | ||||||||||
| P/E Pre IPO | 15.35x | ||||||||||
| P/E Post IPO | 20.41x | ||||||||||
| ROE | 18.52% | ||||||||||
| ROCE | 20.63% | ||||||||||
| P/BV | 1.80x | ||||||||||
| Debt/Equity | 0.18x | ||||||||||
| RoNW | 18.52% | ||||||||||
Diffusion Engineers Limited IPO Peer Comparison |
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| Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
| Diffusion Engineers Limited | ₹ 10.94 | 20.63% | 18.52% | 20.41x | 1.80x | 0.18x | 18.52% | ||||
| Ador Welding Limited | ₹ 46.46 | 24.07% | 18.43% | 27.4x | 5.06x | 0.12x | 18.43% | ||||
| AIA Engineering Limited | ₹ 120.4 | 22.80% | 18.41% | 37.1x | 6.26x | 0.07x | 18.41% | ||||
DIFFUSION ENGINEERS LIMITED
T-5 & T-6, Nagpur Industrial Area, MIDC, Hingna, Nagpur -440016 Maharashtra
Contact Person : Chanchal Jaiswal
Telephone : +91 9158317943
Email Id : cs@diffusionengineers.com
Website : http://www.diffusionengineers.com/
Registrar : Bigshare Services Private Limited
Contact Person : Babu Rapheal C.
Telephone : +91 22-6263 8200
Email Id : ipo@bigshareonline.com
Website : https://www.bigshareonline.com/Index.aspx
Lead Manager : Unistone Capital Private Limited
Contact Person : Brijesh Parekh
Telephone : +91 022-46046494
Email Id : mb@unistonecapital.com
Website : https://unistonecapital.com/
Diffusion Engineers is engaged in the business of providing engineering solutions to customers both in domestic and international market. The Company has been in existence for over four decades and provides a wide range of products and services including manufacture of special welding consumables, wear plates and heavy engineering equipment for core industries and provide special and customized repairs and reconditioning services of heavy machinery and equipment.
The management team, led by Chairman and Managing Director Prashant Garg with 20 years of experience and a salary of ₹24 million p.a., includes Non-Executive Director Dr. Nitin Garg, a neurosurgeon; Non-Executive Director Chitra Garg, with a long history in corporate governance; Independent Directors Anil Trigunayat, a former ambassador, Sherry Oommen, a legal and taxation expert, and Deepali Bendre, a seasoned Chartered Accountant, all contributing their diverse expertise to drive the company's growth.
Financially, Revenue in Fiscal 2024, Fiscal 2023 and Fiscal 2022 was ₹2855.61 Million, ₹2586.72 Million and ₹2087.47 Million respectively. The EBITDA for the Fiscals 2024, 2023 and 2022 were ₹462.84 Million, ₹316.73 Million and ₹266.46 Million respectively. The Profit after Tax for the Fiscals 2024, 2023 and 2022 were ₹308.03 Million, ₹221.45 Million and ₹170.46 Million respectively. This indicates steady growth in financial performance.
For the Diffusion Engineers IPO, the company is issuing shares at a pre-issue EPS of ₹10.94 and a post-issue EPS of ₹8.23. The pre-issue P/E ratio is 15.35x, while the post-issue P/E ratio is 20.41x against Industry PE of 33.9x. The company's ROCE for FY24 is 20.63% and ROE for FY24 is 18.52%. These metrics suggest that the IPO is fairly priced.
The Grey Market Premium (GMP) of Diffusion Engineers showing potential listing gains of 37%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Diffusion Engineers Limited IPO for Listing gain or long term investment purposes.
Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information.
About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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