Diffusion Engineers Limited is gearing up for its Initial Public Offering (IPO), with a Book Built Issue amounting to ₹158 crores. This offering consists entirely of a Fresh Issue of 94.05 lakh shares. The subscription period for this IPO opens on September 26, 2024, and will close on September 30, 2024. Following the allotment, which is expected to be finalized around October 01, 2024, the shares will be listed on both the NSE and BSE, with a tentative listing date set for October 04, 2024.

The share price band for the Diffusion Engineers IPO is established between ₹159 and ₹168 per equity share, with a minimum lot size of 88 shares. This means that retail investors will need to invest a minimum of ₹14,784, while High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 14 lots (1,232 shares), totaling ₹2,06,976.

Unistone Capital Private Limited serves as the book-running lead manager for the IPO, while Bigshare Services Private Limited acts as the registrar for the issue.

Diffusion Engineers Limited IPO GMP Today
Currently, the Grey Market Premium (GMP) for Diffusion Engineers Limited IPO stands at ₹62, reflecting investor confidence based on the company's financial performance. It’s important to note that real trading does not occur on the basis of the Grey Market Premium; hence, price discovery can’t be accurately gauged before the shares are listed on the stock exchange. The GMP is a reflection of the demand and supply dynamics in an unregulated market, and is presented solely for educational purposes.

Live Subscription Status
As of now, the Diffusion Engineers IPO will open for subscription on September 26, 2024.

Allotment Status

The allotment date for the Diffusion Engineers IPO is slated for October 01, 2024. Investors can check their allotment status online by following these steps:

Visit the IPO allotment status page.

Select Diffusion Engineers Limited IPO from the dropdown menu.

Enter your application number, PAN, or DP Client ID.

Submit the information to view your allotment status.

This simple process ensures investors can efficiently verify their allotment status and proceed with their investment plans.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for several key objectives:

₹713.80 million for funding capital expenditure towards the proposed expansion of the existing manufacturing facility.

₹303.85 million for establishing a new manufacturing facility in Hingna, Sonegaon District, Nagpur, Maharashtra.

₹220.00 million to cover the company's working capital requirements.

For general corporate purposes.

Financial Performance

Diffusion Engineers has a rich history of providing engineering solutions both domestically and internationally, with over four decades in the industry. Their product range includes specialized welding consumables, wear plates, and heavy engineering equipment, serving core industries while also offering customized repairs and reconditioning services for heavy machinery.

The management team is led by Chairman and Managing Director Prashant Garg, who brings over 20 years of experience to the table. The company's financial performance reflects steady growth, with revenues recorded at ₹2855.61 million for Fiscal 2024, ₹2586.72 million for Fiscal 2023, and ₹2087.47 million for Fiscal 2022. The EBITDA figures for these years are ₹462.84 million, ₹316.73 million, and ₹266.46 million, respectively. The Profit After Tax (PAT) has also seen a consistent increase, with figures of ₹308.03 million for Fiscal 2024, ₹221.45 million for Fiscal 2023, and ₹170.46 million for Fiscal 2022.

Investment Considerations

For the Diffusion Engineers IPO, the company is offering shares at a pre-issue EPS of ₹10.94 and a post-issue EPS of ₹8.23. The pre-issue P/E ratio stands at 15.35x, while the post-issue P/E ratio is 20.41x, compared to the industry PE of 33.9x. With a Return on Capital Employed (ROCE) of 20.63% and Return on Equity (ROE) of 18.52% for FY24, these metrics indicate that the IPO is attractively priced.

Currently, the Grey Market Premium (GMP) suggests potential listing gains of 37%. Considering the strong financial performance and the overall valuation of the IPO, it is recommended that investors consider applying for the Diffusion Engineers Limited IPO, whether for short-term listing gains or long-term investment.

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