Diffusion Engineers Limited, a long-established player in the manufacturing of welding consumables and heavy machinery parts, is set to launch its Initial Public Offering (IPO) from September 26, 2024, to September 30, 2024.
Founded in 1982, Diffusion Engineers has built a strong presence in core industries through its innovative Super Conditioning process, which enhances the life and performance of machine components, while also reducing production costs.
Diffusion Engineers Ltd IPO: Key Details
| Particulars | Details |
| IPO Date | September 26, 2024 to September 30, 2024 |
| Price Band | ₹159 to ₹168 per share |
| Lot Size | 88 Shares |
| Total Issue Size | 9,405,000 shares (up to ₹158.00 Cr) |
| Listing at | NSE, BSE |
Objectives of the IPO
The proceeds from the Diffusion Engineers IPO will be used for:
- Capital expenditure to support future growth.
- Setting up a new manufacturing facility.
- Meeting day-to-day business operation needs.
- General corporate purposes.
Diffusion Engineers Ltd: About the Company
Diffusion Engineers Limited specialises in manufacturing welding consumables, wear plates, and heavy machinery for industries. The company is also known for providing repair and reconditioning services for heavy machinery and equipment, offering wear protection powders, welding, and cutting machines.
Their unique Super Conditioning process extends the service life of machine components, improving wear resistance, reducing stress, and enhancing reparability. This helps customers lower production costs while increasing the efficiency of their machinery.
Key Milestones
- 1982: Incorporated as a Private Limited company
- 2013: Established its subsidiary in Singapore
- 2023: Achieved a turnover of ₹200 crores for the first time
Strengths & Risks of Diffusion Engineers Ltd IPO
Strengths
- Strong Customer Base: In FY24, the company served 472 direct customers, contributing to 72% of its standalone revenue. It also works closely with original equipment manufacturers (OEMs).
- Long-standing Customer Relationships: Diffusion Engineers has cultivated strong, long-term relationships with clients across various industries.
- Experienced Leadership: The company benefits from promoters and a management team with nearly two decades of industry experience.
Risks
- Domestic Market Dependence: Around 90% of the company's total sales come from the domestic market, making it vulnerable to downturns in the Indian economy.
- Operational Concentration: All four of the company's manufacturing facilities are located in Nagpur, Maharashtra, which could expose it to risks from local disruptions such as social unrest or natural disasters.
- Regulatory Risk: The company had previously allotted equity shares to more than 49 investors, which might have been non-compliant with the Companies Act 1956.
Financial Performance
Diffusion Engineers Limited has shown stable growth in recent years. Here are the key financial highlights:
| Parameter | FY 24 | FY 23 | Growth (%) |
| Revenue (₹ Cr) | 285.56 | 258.67 | 10.40% |
| PAT (₹ Cr) | 30.80 | 22.15 | 39.05% |
How to Apply for the Diffusion Engineers IPO?
To apply for the Diffusion Engineers Ltd IPO via INDmoney, follow these steps:
- Download the INDmoney app and create a free account by completing the KYC process.
- Click on the INDstocks tab, followed by IPOs.
- In the 'Explore IPOs' section, find 'Live IPOs.'
- Click 'Apply' to view the key details of the IPO.
- Choose the number of lots you wish to apply for and continue with the application.
- Place your order via UPI. The funds for your IPO application will be held in your bank account until the shares are allocated.
FAQs
What are the dates for Diffusion Engineers IPO?
The Diffusion Engineers Ltd IPO will start on September 26, 2024 and close on September 30, 2024.
What is the lot size of Diffusion Engineers IPO?
The Diffusion Engineers IPO has a lot size of 88 shares. The retail investors can purchase one lot for ₹14,784.
What is the purpose of Diffusion Engineers IPO?
The funds from the Diffusion Engineers IPO will be used to expand the business by setting up a new manufacturing facility, to support future growth and to cover daily business operations.