Diffusion Engineers Limited, a leading engineering solutions provider, is set to launch its Initial Public Offering (IPO) on September 26, 2024. The company aims to raise ₹158 crores through the IPO.
Key Details:
- Issue Type: Book-built Issue
- Issue Size: ₹158 crores (Fresh Issue)
- Price Band: ₹159-₹168 per share
- Face Value:₹10 per share
- Lot Size: 88 share
- Issue Open Date: September 26, 2024
- Issue Close Date: September 30, 2024
- Expected Listing Date: October 3, 2024
- Lead Manager: JM Financial Limited
- Registrar: Link Intime India Private Limited
Timeline
| IPO Open Date: | September 26, 2024 |
| IPO Close Date: | September 30 , 2024 |
| Basis of Allotment: | October 1, 2024 |
| Refunds: | October 3, 2024 |
| Credit to Demat Account: | October 3, 2024 |
| IPO Listing Date: | October 4, 2024 |
About Company
Diffusion Engineers Limited is a leading provider of engineering solutions, specializing in welding consumables, wear plates, and heavy machinery. The company offers repair and reconditioning services for heavy machinery and equipment, as well as trading in wear protection powders and welding and cutting machines.
Core Business:
- Welding Consumables: Diffusion Engineers manufactures a wide range of welding consumables, including electrodes, wires, and fluxes.
- Wear Plates and Parts: The company produces wear plates and other components for various industries.
- Heavy Machinery: Diffusion Engineers offers repair and reconditioning services for heavy machinery and equipment.
- Trading: The company also trades in wear protection powders and welding and cutting machines.
Market Position:
Diffusion Engineers has a strong presence in the Indian market, serving a diverse range of industries including manufacturing, construction, and infrastructure. The company is known for its expertise in welding and repair technologies.
Future Outlook:
The Indian manufacturing sector is expected to grow, providing opportunities for Diffusion Engineers to expand its business. The company may also explore new markets or product segments to drive growth.
Here are some resources to learn more about company
Objective
The primary objectives of the Diffusion Engineers Limited IPO are:
- Raising Capital: The company aims to raise ₹158 crores through the IPO, which will be used for:
- Expansion: Funding the expansion of manufacturing facilities and distribution network.
- Working Capital: Meeting the day-to-day operational expenses of the business.
- General Corporate Purposes: Supporting other growth initiatives and strategic investments.
- Brand Visibility: The IPO will increase the visibility of Diffusion Engineers among investors and the general public, enhancing its brand recognition and credibility.
- Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.
By achieving these objectives, Diffusion Engineers Limited aims to strengthen its financial position, expand its business, and enhance its market presence.
POSITIVE
- Diverse Product Range: Offers a wide range of welding consumables, wear plates, and heavy machinery repair services.
- Market Presence: Has a strong presence in the Indian market with a focus on quality products and reliable service.
- Manufacturing Expertise: Demonstrated expertise in welding and repair technologies.
NEGATIVE
- Competition: The welding and repair services market is competitive, with both domestic and international players.
- Raw Material Costs: Fluctuations in the prices of raw materials used in manufacturing can impact profitability.
- Regulatory Changes: Changes in government regulations related to manufacturing or safety can affect the industry.
Financial Review of Diffusion Engineers Limited
So, How Does Diffusion Engineers Limited IPO Fare in Terms of Financials ?
Financial Review of Diffusion Engineers Limited
| Period Ended | Assets | Revenue | PAT | Net Worth | Reserves & Surplus | Total Borrowing |
|---|---|---|---|---|---|---|
| 31 Mar 2024 | 275.59 | 285.56 | 30.82 | 190.71 | 163.03 | 34.44 |
| 31 Mar 2023 | 230.34 | 258.67 | 22.15 | 142.12 | 138.39 | 48.09 |
| 31 Mar 2022 | 189.55 | 208.75 | 17.05 | 120.65 | 117.34 | 24.60 |
Financial Highlights
- Revenue Growth: The company has consistently increased its revenue over the past three years, indicating strong growth and market penetration.
- Profitability: Profit after tax (PAT) has also grown steadily, suggesting improved operational efficiency and cost management.
- Asset Growth: The company has invested in assets, as evidenced by the increase in total assets over the three years.
- Net Worth and Reserves: A healthy increase in net worth and reserves suggests a strong financial position.
- Debt: Total borrowing has increased, but it remains at a manageable level.
Diffusion Engineers Limited IPO Valuation :
| KPI | Values |
|---|---|
| ROE | 18.52% |
| ROCE | 20.63% |
| Debt/Equity | 0.18 |
| RoNW | 18.52% |
| P/BV | 2.47 |
| PAT Margin (%) | 10.79 |
SWOT Analysis: Diffusion Engineers Limited IPO
Strengths
- Diverse Product Range: Offers a wide range of welding consumables, wear plates, and heavy machinery repair services.
- Manufacturing Expertise: Demonstrated expertise in welding and repair technologies.
- Market Presence: Has a strong presence in the Indian market with a focus on quality products and reliable service.
Weaknesses
- Competition: The welding and repair services market is competitive, with both domestic and international players.
- Raw Material Costs: Fluctuations in the prices of raw materials used in manufacturing can impact profitability.
- Regulatory Changes: Changes in government regulations related to manufacturing or safety can affect the industry.
Opportunities
- Growing Manufacturing Sector: The Indian manufacturing sector is growing, providing opportunities for expansion.
- Technological Advancements: Investing in research and development to adopt new technologies.
- Export Markets: Exploring opportunities to expand into international markets.
Threats
- Economic Downturns: A slowdown in the economy can impact demand for welding and repair services.
- Competition from Global Players: Global companies may increase their presence in the Indian market.
- Regulatory Challenges: Stricter regulations or compliance requirements can increase operational costs.
COMPETITIVE ANALYSIS: MARKET PEERS
Key Competitors
- Weld India Limited: A leading manufacturer and supplier of welding consumables and equipment in India.
- Esab India Limited: A subsidiary of ESAB AB, a global leader in welding and cutting solutions.
- Lincoln Electric India: A subsidiary of The Lincoln Electric Company, a global manufacturer of welding, cutting, and automation products.
- Ador Welding Limited: A diversified engineering company with a focus on welding products and services.
Diffusion Engineers Limited IPO GMP
- Grey market premium as on 30-09-2024 = ₹168 /Share
Disclaimer:
- IPO Grey Market Premium (Diffusion Engineers Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
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Diffusion Engineers Limited IPO
🔴 Live Subscription Status 🔴
30/09/2024 5:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 14,03,250 | 0.03 | 0.28 | 95.74 |
| Non Institutional Investors(NIIs) | 14,03,250 | 6.79 | 47.06 | 207.60 |
| Retail Individual Investors(RIIs) | 32,74,250 | 11.23 | 33.88 | 85.61 |
| Employees | 50,000 | 16.66 | 36.62 | 95.04 |
| Total | 65,98,500 | 7.15 | 27.17 | 114.49 |
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