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23 September 2024

Diffusion Engineers Limited IPO, GMP, Details, Price, And Review

Diffusion Engineers Limited is a company engaged in manufacturing welding consumables, heavy engineering machinery, wear parts, and wear plates for the core industries. With its experience of over four decades, the company is quite dedicated to offering specialized repairs and reconditioning services for heavy equipment and machinery.

Diffusion Engineers Limited is also involved in trading welding and cutting machinery along with anti-wear powders. It offers a super conditioning process at its manufacturing facilities. It is a surface treatment solution for the machine components that enhances wear resistance while eliminating any stress and improving repairability. It ultimately extends their lifespan and reduces the cost of production. Furthermore, the company has also developed forward integration’s synergistic system whereby manufacturing the flux-cored wires and special-purpose electrodes that are used for the manufacturing wear resistance places, well-known as the wear plates, is done.

Diffusion Engineers IPO Overview

● Issue Size: ₹158.00 crores
● Issue Type: Fresh issue of 0.94 crore shares
● Price Band: ₹159 to ₹168 per share
● Minimum Lot Size: 88 shares
● Subscription Period:
○ Opening Date September 26, 2024
○ Closing Date: September 30, 2024
● Book Running Lead Manager: Unistone Capital Pvt Ltd
● Registrar: Bigshare Services Pvt Ltd

WHAT IS GMP?

GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.

A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.

Diffusion Engineers Limited IPO GMP

GMP Date	IPO Price	GMP	Last Updated
04-10-2024	168	58 (34.52%)	04-Oct-2024 12:25
03-10-2024	168	55 (32.74%)	03-Oct-2024 12:45
01-10-2024	168	60 (35.71%)	01-Oct-2024 12:15
30-09-2024	168	58 (34.52%)	30-Sep-2024 12:28
28-09-2024	168	55 (32.74%)	28-Sep-2024 12:15
27-09-2024	168	90 (53.57%)	27-Sep-2024 12:15
26-09-2024	168	80 (47.62%)	26-Sep-2024 12:35
25-09-2024	168	77 (45.83%)	25-Sep-2024 12:10
24-09-2024	168	50 (29.76%)	24-Sep-2024 12:45

**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**

Diffusion Engineers IPO Overview

Detail	Description
IPO Date	September 26, 2024 to September 30, 2024
Listing Date	[.]
Face Value	₹10 per share
Price Band	₹159 to ₹168 per share
Lot Size	88 Shares
Total Issue Size	9,405,000 shares (aggregating up to ₹158.00 Cr)
Fresh Issue	9,405,000 shares (aggregating up to ₹158.00 Cr)
Employee Discount	Rs 8 per share
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Shareholding pre issue	28,021,259
Shareholding post issue	37,426,259

Diffusion Engineers IPO Timeline (Tentative Schedule)

Detail	Description
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
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

Diffusion Engineers Limited IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	88	₹14,784
Retail (Max)	13	1144	₹192,192
S-HNI (Min)	14	1,232	₹206,976
S-HNI (Max)	67	5,896	₹990,528
B-HNI (Min)	68	5,984	₹1,005,312

Diffusion Engineers Limited IPO Reservation

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

Diffusion Engineers IPO Promoter Holding

Share Holding Pre Issue	93.10%
Share Holding Post Issue

Company & Financials

● Manufacturing- welding consumables, heavy machinery, and the wear plates and parts for the core industries.
● Specialized Repair and Reconditioning Services for the heavy machinery and equipment.
● Trades in the wear protection powders and the welding and cutting machines.

At the production facilities of Diffusion Engineers Limited, the organization offers a Super Conditioning process too, to eliminate stress and improve reparability. It ultimately extends its service life and reduces the cost of production.

There are four manufacturing units of Diffusion Engineers Limited. Units I, II, and III are in the Nagpur Industrial Area, Hingna, Nagpur, Maharashtra, while Unit IV is located in Khapri (Uma), Nagpur, Maharashtra. All these units are responsible for processing and manufacturing the products.

● Unit I: Welding of electrodes to be used for special purposes.
● Unit II: Flux the cored wires, wear plates, and also the wear parts via fabrication and machining.
● Unit III: Coatings for abrasion as well as corrosion resistance.
● Unit IV: Flux-cored wires (since FY2024), wear plates, and also heavy engineering.

Diffusion Engineers Limited Financial Information

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
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
Amount in ₹ Crore

Key Performance Indicator

KPI	Values
ROE	18.52%
ROCE	20.63%
Debt/Equity	0.18
RoNW	18.52%
P/BV	2.47
PAT Margin (%)	10.79

	Pre IPO	Post IPO
EPS (Rs)	10.99	8.23
P/E (x)	15.28	20.41

Objectives of Diffusion Engineers IPO

As per the available update, the Company proposes to use its raised Net Proceeds towards funding:

1. Funding the capital expenditure needs towards existing manufacturing facilities expansion at Khasra No. 36, 38/1, 38/2, 38/3, Khapri (Uma), Nagpur- 441 501, Maharashtra, India (Proposed Expansion).

2. The set-up of the new manufacturing facility that’s located at Plot Nos. 33-B/1/1/ & 33-B/1/1/Part, MIDC, Hingna, Sonegaon District, Nagpur-440 016, Maharashtra (Proposed Facility).

3. Company’s working capital requirements.

4. General Corporate Purposes.

Diffusion Engineers IPO Review

The company is engaged in the manufacturing welding consumables, wear plates, wear parts and heavy engineering machinery for core industries. It posted steady growth in its top and bottom lines for the reported periods. Based on FY24 earnings, the issue appears fully priced. It is poised for bright prospects amidst mega spending on infra and industrialization. Though the issue appears fully priced, investors may park funds for medium to long term.

FAQs for Diffusion Engineers IPO

Which IPO is being launched by Diffusion Engineers?

The company is launching a Mainboard IPO that will be listed on the BSE and NSE. It is expected to raise ₹158 Crores through this. The issue has been priced at ₹159 to ₹168 per equity share.
When does the subscription for Diffusion Engineers IPO open?

The subscription for the QIB, NII, and Retail Investors opens on September 26, 2024, and closes on September 30, 2024.
What is Diffusion Engineers IPO Investors Portion?

The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
What is the issue size of Diffusion Engineers IPO?

₹158 crores is Diffusion Engineers IPO issue size.
What is the Price Band for Diffusion Engineers IPO?

₹159 to ₹168 is the Price Band for Diffusion Engineers IPO.
What is the lot size of Diffusion Engineers IPO?

88 Shares with ₹14,784 amount is the lot size.
What is the Allotment date for Diffusion Engineers IPO?

October 1, 2024, is the allotment date for Diffusion Engineers IPO.
What is the listing date for the Diffusion Engineers IPO?

October 4, 2024, is the listing date for Diffusion Engineers IPO. The IPO will be listed on the NSE and BSE.
What is Diffusion Engineers current GMP?

The current GMP of Diffusion Engineers is 58 (34.52%).