Diffusion Engineers IPO

Diffusion Engineers Ltd

₹13,992 /88 sharesMinimum Investment

Diffusion Engineers IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
--₹168.00₹193.50₹25.50 (15.18%)

Diffusion Engineers IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
26 Sep ‘24 - 30 Sep ‘24₹13,99288₹159 - ₹168
Issue SizeIPO Doc
158.00Cr
RHP PDF

Subscription rate

As of 30 Sep'24, 04:00 PM
Qualified Institutional Buyers79.81x
Non-Institutional Investor199.86x
Retail Individual Investor77.69x
Employees86.30x
Total104.33x

About Diffusion Engineers

Diffusion Engineers manufactures welding consumables, wear plates, and heavy engineering machinery for different industries and offers repair and reconditioning services for heavy machinery and equipment. Diffusion Engineers also trades in anti-wear powders and welding and cutting machinery. The company’s product and service offerings can be categorised into welding consumables, anti-wear products, wear plates and parts, heavy engineering equipment, and trading. Some of its products include special-purpose electrodes, flux-cored wire, cold repair compounds, wear plates, grizzly bars, coal nozzle tips, wear liners, chutes and ducts, hard face pipes, guide vanes, sinter spikes, sinter screen decks, and screw conveyors. The company also provides welding services and thermal spray powders.;
Founded in
1982
Managing director
Mr. Prashant Garg
Parent organisation
Diffusion Engineers Ltd

Strengths & Financials of Diffusion Engineers

Strengths
Risks
Diffusion Engineers claims to have established a forward integration system that allows for the manufacturing of special-purpose electrodes and flux-cored wires, which are essential for creating wear-resistant plates.
The company operates four manufacturing units and claims that each is equipped with the necessary infrastructure for raw material storage, product manufacturing, finished goods storage, and quality control. Diffusion Engineers claims that all the equipment used is owned by the company.
Diffusion Engineers is ISO 9001:2015 certified for quality management systems, ISO 45001:2018 certified for occupational health and safety management systems, and ISO 14001:2015 for environment management systems.
The company has an international presence through subsidiaries in Singapore, Turkey, and the Philippines, as well as joint ventures and associates in the United Kingdom and Malaysia.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT) over the past few years. Revenue from operations increased from Rs 204.59 crore in FY22 to Rs 254.88 crore in FY23 to Rs 278.14 crore in FY24, while PAT increased from Rs 17.05 crore in FY22 to Rs 22.14 crore in FY23 to Rs 30.80 crore in FY24.
Diffusion Engineers’ revenue relies heavily on sales in the domestic market. The domestic m market contributed Rs 230.78 crore (89.75%), Rs 214.64 crore (87.94%), and Rs 179.58 crore (91.74%) to standalone revenue from operations in FY24, FY23, and FY22, respectively. Any adverse developments in India could negatively affect the company’s business operations and finances.
The company operates four manufacturing facilities, all located in Nagpur, Maharashtra. Any adverse developments in the business environment of the state could disrupt the company’s manufacturing operations and negatively impact its financial performance.
The company’s performance is tied to several key industries. These industries include cement, engineering, power, steel, and sugar. Together, these 5 sectors contributed Rs 193.56 crore (75.28%), Rs 173.05 crore (70.90%), and Rs 146.13 crore (74.65%), respectively, to standalone revenue in FY24, FY23, and FY22. Any economic downturns or decrease in demand in these sectors, both locally and globally, can adversely affect the company’s business and financial stability.
The top 10 customers of the company contributed Rs 81.86 crore (29.43%), Rs 75.54 crore (30.95%), and Rs 65.13 crore (33.27%) to standalone revenue in FY24, FY23, and FY22, respectively. Any loss of these customers, a failure to retain them, or a decrease in demand from them can negatively affect the company’s functions and financial performance.
The company, its promoters, and its directors are currently involved in outstanding litigation. Any adverse judgments in any of these cases could be detrimental to the company's business prospects.
As of July 31, 2024, the company had a total indebtedness of Rs 41.80 crore. Any inability to service or repay these loans could be detrimental to the company’s financial standing.

Diffusion Engineers Financials

*All values are in Rs. Cr
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Application Details of Diffusion Engineers IPO

Apply asPrice bandApply upto
Regular159 - 168₹2 Lakh
Employee151 - 160₹2 Lakh
High Networth Individual159 - 168₹2 - 5 Lakh
For Diffusion Engineers IPO, eligible investors can apply as Regular & Employee.