Diffusion Engineers Ltd IPO GMP, Allotment & Issue Dates, Lot Size, and Company Insights
Diffusion Engineers Ltd IPO GMP, Allotment & Issue Dates, Lot Size, and Company Insights
Diffusion Engineers’ Initial Public Offering (IPO) is a book-built issue valued at Rs 158.00 crores. The entire issue consists of 0.94 crore shares.
Diffusion Engineers IPO will be available for subscription from September 26, 2024, to September 30, 2024. The allotment for the IPO is anticipated to be completed on Tuesday, October 1, 2024. The Mainline IPO will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Friday, October 4, 2024.
The IPO price band for Diffusion Engineers ranges from Rs 159 to Rs 168 per share. The minimum lot size for an application is 88 shares. The issue includes a reservation of up to 50,000 employee shares at a discount of Rs 8 to the issue price.
Retail investors need to invest a minimum of Rs 14,784. Small Non-Institutional Investors (sNII) need to invest in a minimum of 14 lots (1,232 shares), amounting to Rs 206,976, and big Non-Institutional Investors (bNII) need to invest in a minimum of 68 lots (5,984 shares), amounting to Rs 10,05,312.
Unistone Capital Pvt Ltd is the book-running lead manager of the Diffusion Engineers IPO. Bigshare Services Pvt Ltd is the issue’s registrar.
Summary of the main IPO Details
| Particulars | Details |
| IPO Date | September 26, 2024 to September 30, 2024 |
| Face Value | Rs 10 per share |
| Price Band | Rs 159 to Rs 168 per share |
| Lot Size | 88 Shares |
| Total Issue Size | 94,05,000 shares (aggregating up to Rs 158.00 Crores) |
| Fresh Issue | 94,05,000 shares (aggregating up to Rs 158.00 Crores) |
| Employee Discount | Rs 8 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre-issue | 2,80,21,259 |
| Shareholding post-issue | 3,74,26,259 |
Key dates of the Diffusion Engineers Ltd IPO
| Particulars | Details |
| IPO Open Date | Thursday, September 26, 2024 |
| IPO Close Date | Monday, September 30, 2024 |
| Basis of Allotment | Tuesday, October 1, 2024 |
| Initiation of Refunds | Thursday, October 3, 2024 |
| The credit of Shares to Demat | Thursday, October 3, 2024 |
| Listing Date | Friday, October 4, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 30, 2024 |
Investor categories and shares offered to them
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Offer |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
Applicants’ lot size, shares applied, and value of shares.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 88 | Rs 14,784 |
| Retail (Max) | 13 | 1144 | Rs 1,92,192 |
| S-HNI (Min) | 14 | 1,232 | Rs 2,06,976 |
| S-HNI (Max) | 67 | 5,896 | Rs 9,90,528 |
| B-HNI (Min) | 68 | 5,984 | Rs 10,05,312 |
HNI stands for High Net Worth Individuals
The recent grey market premium (GMP) for the Diffusion Engineers IPO stands at Rs 50 as of the last update on September 24, 2024, at 08:57 AM IST. The price band for the IPO is set at Rs 159 to Rs 168.00, which suggests an estimated listing price of Rs 218 (cap price + today’s GMP).
Based on this information, the anticipated percentage gain/loss per share is approximately 29.76%. The retail subject to Sauda for the Diffusion Engineers IPO is Rs 3300. However, the specific figure for the small HNI subject to Sauda is not available now.
Diffusion Engineers Limited has a long history and has become a significant player in producing welding consumables, wear plates, parts, and heavy machinery for core industries since 1982. Its extensive experience reflects the company’s dedication to quality and creativity.
The company’s main selling point is its specialised services for repairing and reconditioning heavy machinery and equipment. Additionally, it sells wear protection powders, welding, and cutting machines.
At its production facilities, the company provides the Super Conditioning process, a surface treatment for machine components that enhances wear resistance, eliminates stresses, and improves reparability. This process ultimately extends service life and reduces production costs, making it a valuable service in the industry.
Diffusion Engineers Limited operates four manufacturing units. Units I, II, and III are situated at Nagpur Industrial Area, Hingna, Nagpur, Maharashtra, while Unit IV is located at Khapri (Uma), Nagpur, Maharashtra and is responsible for processing and manufacturing the products. The manufacturing operations are distributed across the various units.
The Unit I handles welding electrodes for special purposes. Unit II deals with Flux cored wires, wear plates, and wear parts through fabrication and machining. Unit III focuses on coatings for abrasion and corrosion resistance. Unit IV is responsible for Flux-cored wires (since the financial year 2024), wear plates, and heavy engineering.
Extract from financial statements for the past three financial years for the period ended on March 31.
| Particulars | As of 31-03-2024 (Rs in crores) | As of 31-03-2023 (Rs in crores) | As of 31-03-2022 (Rs in crores) |
| Assets | 275.59 | 230.34 | 189.55 |
| Revenue | 285.56 | 258.67 | 208.75 |
| Profit After Tax | 30.8 | 22.15 | 17.05 |
| Net Worth | 190.7 | 142 | 120.65 |
| Reserves and Surplus | 163.03 | 138.39 | 117.34 |
| Total Borrowing | 34.44 | 48.09 | 24.6 |
Key Ratios as of March 31, 2024.
| KPI (key performance indicator) | Values as of March 31, 2024 |
| ROE (return on Equity) | 18.52% |
| ROCE (return on capital employed) | 20.63% |
| Debt/Equity | 0.18:1 |
| RoNW (return on net worth) | 18.52% |
| P/BV (price to book value) | 2.47 |
| PAT (profit after tax) Margin (%) | 10.79 |
The red herring prospectus (RHP) of the company’s IPO has disclosed some risks related to the company and its business.
The risks described are stated below.
Risks related to sales
The company is dependent on domestic sales, any disruption or downward moment in the sales in the Indian market could lead to disturbance in the sales of its products.
Risks related to negative cash flows
Looking towards to company’s financials, the company has experienced negative cash flows from operating and investing activities in the past. If such situations arise in the future, then it could have an adverse impact on the company financially and operationally as well.
Risks related to the Manufacturing Unit
The manufacturing units of the company are located at Nagur district of Maharashtra, India. Thus, any disruption or hindrance in manufacturing due to natural hazards or in nearby areas, might lead to shut-down or temporary closure of the manufacturing activities of the company.
Risks regarding other related industries
The company’s business is dependent on other related businesses like Cement, Engineering, Power, Steel, and Sugar industries. For manufacturing and servicing of its core products, the company is dependent on these other five industries.
The business relies on the performance of these industries. Economic ups and downs and reduced demand in these industries, in India or globally, could harm our business, financial condition, and results.
Risks related to certain delays
If there are any delays in establishing the planned facility or planned expansion, or if the expenses and potential time or cost overruns associated with the scheduled facilities or the acquisition of equipment for the Planned Facilities exceed expectations, it could significantly negatively impact the company’s financial situation, business performance, and prospects.
When is the Diffusion Engineers Ltd IPO Opening date?
The IPO opens on September 26, 2024.
When is the Diffusion Engineers Ltd IPO Closing date?
The IPO closes on September 30, 2024.
What are the Diffusion Engineers Ltd owner details?
Mr. Prashant Garg is the chairman and Managing Director of the Diffusion Engineers Ltd company.
What is the Diffusion Engineers Ltd IPO Lot size?
The minimum lot size for the retail investors of the IPO is one lot which consists of 88 shares.
What is the Diffusion Engineers Ltd IPO share price?
The share price band is between Rs 159 and Rs 168 per share.
What are the objectives of Diffusion Engineers Ltd IPO?
The objectives of the above issue include funding of the company’s capital expenditure requirements for its existing manufacturing activities for their expansion; setting up of new manufacturing units; providing funds for meeting working capital requirements of the company; and for meeting general corporate purposes.
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