Diffusion Engineers Limited
Diffusion Engineers Limited(DIFFNKG)
Total Shares
94,05,000
Issue Size
₹158.00 Cr
Price Band
₹159 – ₹168
Lot Size
88 shares
Min. Investment
₹14,784
Max. Investment
₹14,784
Open Date
26 Sep, 2024
Close Date
30 Sep, 2024
Allotment
01 Oct, 2024
Listing
04 Oct, 2024
Max. Investment
₹14,784
Announced
26 Sep, 2024
Opening Date
26 Sep, 2024
Closing Date
30 Sep, 2024
Basis of Allotment
01 Oct, 2024
Initiation of Refunds
03 Oct, 2024
Credit of Shares
03 Oct, 2024
Listing Date
04 Oct, 2024
Live GMP
Est. Listing: ₹218
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About Diffusion Engineers Limited IPO
Founded in 1982, Diffusion Engineers Limited is active in the manufacture of welding consumables, wear plates and parts, and heavy machinery for core industries.
The company offers specialized repair and reconditioning services for heavy machinery and equipment. The company also trades in wear protection powders and welding and cutting machines. At its production facilities, the company offers the Super Conditioning process, a surface treatment for machine components that increases we
Diffusion Engineers Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 33.6% increase in shares
Diffusion Engineers Limited IPO Financials Health
Diffusion Engineers Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Maximum | 13 | 1144 | ₹1,92,192 |
| SHNI Minimum | 14 | 1232 | ₹2,06,976 |
| SHNI Maximum | 67 | 5896 | ₹9,90,528 |
| BHNI Minimum | 68 | 5984 | ₹10,05,312 |
| Retail Minimum | 1 | 88 | ₹14,784 |
(All values in CR)
Diffusion Engineers Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 0.18 |
| EPS Post IPO | 8.23 |
| EPS Pre IPO | 10.99 |
| P/BV | 2.47 |
| P/E Post IPO | 20.41 |
| P/E Pre IPO | 15.28 |
| PAT Margin (%) | 10.79 |
| ROCE | 20.63% |
| ROE | 18.52% |
| RoNW | 18.52% |
(All values in CR)
Strength & Risk of Diffusion Engineers Limited IPO
1. Synergistic business models focused on forward integration.
2. Serving industry major players directly as well as through OEMs.
3. Consistent financial performance.
4. Long-standing relationships with customers across industries.
5. Experienced promoters and strong management team.
6. Strategically located manufacturing facilities.
1. Our Company is increasingly dependent on a domestic market for its sales and any a downturn in it could dent our market share.
2. Our Company had negative cash flows during certain fiscal years in relation to our operating, investing and financing activities. Sustained negative cash flows in the future would adversely affect our results of operations and financial condition.
3. We operate from four Manufacturing Facilities all of which are located in Nagpur, Maharashtra and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around, Nagpur, Maharashtra or any disruption in production at, or shutdown of, all our manufacturing units could have material adverse effect on our business and financial condition.
4. Our business is dependent on the performance of certain other industries. Economic cyclicality coupled with reduced demand in these other industries, in India or globally, could adversely affect our business, results of operations and financial condition
5. Our proposed plans with respect to funding the capital expenditure requirements as per our Objects of the Issue is subject to the risk of unanticipated delays in obtaining approvals and implementation.
6. If there are delays in setting up the Proposed Facility or Proposed Expansion or if the costs of setting up and the possible time or cost overruns related to the Proposed Facilities or the purchase of plant and machinery for the Proposed Facilities are higher than expected, it could have a material adverse effect on our financial condition, results of operations and growth prospects.
7. Our business and profitability is substantially dependent on the availability and cost of our raw materials and any disruption to the timely and adequate supply or volatility in the prices of raw materials may adversely impact our business, results of operations, cash flows and financial condition.
8. Our Company had made allotment of equity shares in the past which was allotted to more than 49 investors, which may have been in non-compliance with the Companies Act, 1956.
9. Conflict of interest may arise as some of our Group Companies and Subsidiaries are authorized to carry on similar line of business as our Company which may lead to real or potential conflicts of interest for our Promoters or Directors.
10. Our inability to collect receivables and default in payment from our customers could result in the reduction of our profits and affect our cash flows.
Diffusion Engineers Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| Anchor | 1.00 | 28,06,500 | 28,06,500 | 47.15 |
| BHNI (10L+) | 203.34 | 9,35,500 | 19,02,22,560 | 3 |
| Employees | 95.05 | 50,000 | 47,52,704 | 79.85 |
| HNI | 207.60 | 14,03,250 | 29,13,18,544 | 4 |
| QIB | 95.74 | 18,71,000 | 17,91,21,712 | 3 |
| Retail | 85.61 | 32,74,250 | 28,03,22,768 | 4 |
| SHNI (2L - 10L) | 216.13 | 4,67,750 | 10,10,95,984 | 1 |
| Total | 114.50 | 65,98,500 | 75,55,15,728 | 12 |
Diffusion Engineers Limited IPO GMP
Last updated 24 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 24 Sep, 2024 | 168 | ₹50▼ | 3300/46200 | ₹218 (29.76%) | - | 24 Sep, 2024 |
| 25 Sep, 2024 | 168 | ₹77▼ | 5100/71400 | ₹245 (45.83%) | - | 25 Sep, 2024 |
| 26 Sep, 2024 | 168 | ₹80▼ | 5400/75600 | ₹248 (47.62%) | - | 26 Sep, 2024 |
| 27 Sep, 2024 | 168 | ₹90▲ | 6000/84000 | ₹258 (53.57%) | - | 27 Sep, 2024 |
| 30 Sep, 2024 | 168 | ₹58▼ | 3900/54600 | ₹226 (34.52%) | - | 30 Sep, 2024 |
| 01 Oct, 2024 | 168 | ₹60▼ | 4000/56000 | ₹228 (35.71%) | - | 01 Oct, 2024 |
| 03 Oct, 2024 | 168 | ₹66▲ | 4400/61600 | ₹234 (39.29%) | - | 03 Oct, 2024 |
| 04 Oct, 2024 | 168 | ₹58 | 3900/54600 | ₹226 (34.52%) | - | 04 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
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Diffusion Engineers Limited IPO
Overview of Diffusion Engineers Limited IPO
Diffusion Engineers Limited is set to go public with its initial public offering (IPO). The company, headquartered in Nagpur, specializes in manufacturing wear-resistant products, primarily serving the welding and heavy engineering sectors. Established in 1982, Diffusion Engineers Limited has decades of experience, positioning itself as a key player in its industry.
Key IPO Details:
- Total Issue Size: Up to 9,405,000 equity shares of ?10 each.
- Listing: The company’s shares will be listed on both BSE and NSE.
- Book Running Lead Manager: Unistone Capital Private Limited.
- Registrar: Bigshare Services Private Limited.
Pros and Cons of Diffusion Engineers Limited IPO
Pros
- Established Market Presence: With a history dating back to 1982, Diffusion Engineers has an established reputation in the welding and heavy engineering industries.
- Industry Demand: The products offered, particularly wear-resistant materials, cater to industries like automotive, defense, and construction, which are experiencing steady growth.
- Diversified Product Portfolio: The company offers a wide range of products and services, reducing its reliance on any single market or product.
- Experienced Promoters: The company is led by Prashant Garg, Dr. Nitin Garg, and Chitra Garg, who bring significant expertise to the business.
Cons
- First-Time Public Issue: Since this is the company’s first public issue, it lacks a track record in the public market, which could pose risks for new investors.
- Industry-Specific Risks: The heavy engineering and welding industry is subject to fluctuations in raw material costs and government regulations, impacting profitability.
- Volatility Risk: As with any IPO, the stock could face volatility, especially since this is a fresh issue with no prior listing history.
- Capital-Intensive Business: The business model is capital-intensive, with high fixed costs, which may impact margins, especially in times of low demand.
Risk Factors
Market and Industry Volatility
The success of this IPO largely depends on external factors such as demand for heavy engineering products, the costs of raw materials, and regulatory changes. These factors could significantly influence profitability and share price movements.
Competition in the Sector
Diffusion Engineers Limited operates in a highly competitive industry, where both domestic and international players are present. Increased competition could lead to pricing pressures and reduced market share.
Investment Considerations
Who Should Invest?
This IPO is best suited for investors looking for exposure to the heavy engineering and welding sectors. Investors with a higher risk appetite and long-term growth perspectives may find this IPO appealing, especially considering the company’s strong market position and the potential for industry growth.
Conclusion
The Diffusion Engineers Limited IPO presents an interesting opportunity for investors to invest in a well-established company within a niche market. While the company has a solid track record in the industry, potential investors should carefully consider the risks associated with market volatility and competition.
FAQs About Diffusion Engineers Limited Ipo
Diffusion Engineers Limited IPO will open on 26 Sep, 2024 and close on 30 Sep, 2024. Investors must apply within this period to participate.
The Diffusion Engineers Limited IPO price band is set between ₹159.00 and ₹168.00 per share. The minimum lot size is 88, requiring an investment of at least ₹14784.00.
The Diffusion Engineers Limited IPO shares are expected to be listed on 04 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Diffusion Engineers Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Diffusion Engineers Limited IPO will be listed on major stock exchanges such as NSE and BSE, where you can trade shares once they are listed.