Investing in initial public offerings (IPOs) can offer a strategic opportunity for investors seeking to diversify their portfolios. With several upcoming IPOs gaining attention, it’s essential to keep track of the latest developments. The Diffusion Engineers Limited IPO presents another prospect in the market.
As with any IPO investment, details like the issue date, price, and lot size are crucial for informed decision-making. Staying updated on such information helps investors make timely and well-informed choices. This blog covers the important aspects of the Diffusion Engineers Limited IPO, giving you an overview of what to expect.
Diffusion Engineers IPO is a book-built offering with a total size of ₹158.00 crores, consisting of a fresh issue of 0.94 crore shares. The IPO will be available for subscription from September 26, 2024, to September 30, 2024.
The allotment for the Diffusion Engineers IPO is likely to be finalised on Tuesday, October 1, 2024. Following the allotment process, the IPO is expected to list on both BSE and NSE, with the tentative listing date set for Friday, October 4, 2024. For those considering IPO investments, staying updated on upcoming IPOs like Diffusion Engineers is key to timely decisions.
The Diffusion Engineers IPO is priced between ₹159 and ₹168 per share, with a minimum application size of 88 shares. For retail investors, the minimum investment required is ₹14,784.
Small NII applicants must invest in 14 lots (1,232 shares) worth ₹206,976, while large NII applicants need to apply for 68 lots (5,984 shares), amounting to ₹1,005,312. Employees have the opportunity to purchase up to 50,000 reserved shares at a ₹8 discount per share. The issue is managed by Unistone Capital Pvt Ltd, with Bigshare Services Pvt Ltd as the registrar.
| Diffusion Engineers Limited IPO open date | September 26, 2024 (Thursday) |
| Diffusion Engineers Limited IPO close date | September 30, 2024 (Monday) |
| Allotment allocation | October 1, 2024 (Tuesday) |
| Refund initiation | October 3, 2024 (Thursday) |
| Crediting shares to DEMAT | October 3, 2024 (Thursday) |
| Date of listing | October 4, 2024 (Friday) |
| UPI mandate confirmation | September 30, 2024, by 5 PM |
Founded in 1982, Diffusion Engineers Limited specialises in manufacturing welding consumables, wear plates, and heavy machinery for core industries. The company provides tailored repair and reconditioning services for heavy equipment and trades in wear protection powders, along with welding and cutting machines.
At its production facilities, Diffusion Engineers employs the ‘Super Conditioning’ process, which enhances wear resistance, alleviates stresses, and improves reparability, ultimately extending the lifespan of components while reducing production costs.
The company operates four manufacturing units in the Nagpur Industrial Area, focusing on various products:
As of February 29, 2024, the team comprises over 130 qualified engineers, ensuring high-quality production standards.
Diffusion Engineers Limited experienced a 10% rise in revenue and an impressive 39% increase in profit after tax (PAT) between the financial years ending March 31, 2023, and March 31 2024.
The market capitalisation for the IPO is valued at ₹628.76 crore. Additionally, the current Diffusion Engineers Limited IPO GMP is ₹50, indicating positive investor interest.
| Period ended | 31st March 2024 | 31st March 2023 | 31st March 2022 |
| Total 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 |
| Borrowing | 34.44 | 48.09 | 24.6 |
*Amounts in ₹ Crores
Diffusion Engineers Limited stands out for its robust business model and strategic approach, making it a compelling opportunity for IPO investments. Below are the key strengths of the company:
The company’s business model focuses on forward integration, ensuring smooth operations and maximising efficiency across various stages of production and service delivery.
By catering to prominent industry players both directly and through original equipment manufacturers (OEMs), the company ensures a broad customer base and industry relevance.
Diffusion Engineers has consistently delivered reliable financial results, showcasing its stability and potential for growth in upcoming IPOs.
The seasoned leadership and experienced promoters at the helm further strengthen the company’s growth trajectory and market position, ensuring sustained success.
While the Diffusion Engineers IPO offers notable strengths, it also comes with certain risks that potential investors should consider when planning IPO investments.
The company’s growing reliance on the local market means that any downturn in domestic demand could negatively impact its market share and overall performance.
Diffusion Engineers has experienced negative cash flows from its operating, investing, and financing activities during some fiscal years. Any future occurrence of this could adversely affect the company’s financial stability and operational performance.
All four of the company’s manufacturing units are based in Nagpur, Maharashtra. Any social unrest, natural disaster, or disruption in the region could severely affect production, leading to potential losses and business interruptions.
The Diffusion Engineers IPO presents an interesting opportunity for those exploring IPO investments. With a solid track record in manufacturing and a client base that spans across industries, the company has strong fundamentals.
However, investors should be mindful of its reliance on the domestic market and past negative cash flows. Additionally, the geographic concentration of its manufacturing units in Nagpur poses a potential risk. As one of the upcoming IPOs, it offers potential growth but with notable considerations for long-term stability.
Investing in the Diffusion Engineers Limited IPO offers an opportunity to enter a company with a solid track record in the manufacturing industry. However, like any IPO, it comes with its risks and potential rewards. For those keen on IPO investments and exploring upcoming IPOs, Ventura offers the insights and support to help you make informed decisions.
The IPO opens on September 26, 2024, and closes on September 30, 2024.
The price band is set between ₹159 to ₹168 per share.
The minimum lot size for retail investors is 88 shares, requiring an investment of ₹14,784.
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