Diffusion Engineers Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹168
Per ShareLot Size
88 Shares
Minimum Investment
₹14,784
Issue Size
₹158 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Diffusion Engineers Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
93.1%
Issue Type
Book Building
ISIN
INE184O01015
About the Company
We are engaged in the business of manufacturing welding consumable, wear plates and wear parts and heavy engineering machinery for core industries and provide special and customized repairs and reconditioning services of heavy machinery and equipment. We are also involved in trading of anti-wear powders and welding and cutting machinery.
Industry Overview
Welding consumables market in India is estimated at around Rs 51 billion in fiscal 2024, with fiscal 2027 projections around Rs 64-66 billion. Due to the rise in demand for improved infrastructure, a lot of investment is happening in infrastructure development, such as construction of roads, bridges, ports and airports. The wear plates market in India is estimated at around Rs 22 billion in fiscal 2024 and is expected to grow at a CAGR of 8-9% to Rs 28 billion in fiscal 2027. Wear plates are essential part of the industries such as power plants, steel mills, quarrying, cement etc., as these plates protect key components of these industry. As India continues to undergo rapid industrialization, each of these industries would grow and require wear plates to protect their equipment and machinery. India's heavy engineering capital goods industry is estimated to be Rs 3,100-3,200 billion as of fiscal 2024, and is projected to clock a CAGR of 7.5-8.5% over fiscals 2023-27 to reach Rs 3,800-3,900 billion. Heavy electrical engineering, earthmoving, construction and mining machinery, and process plant equipment are the largest segments of the industry. Amongst the players considered for the industry between fiscal 2021-2024, our Company recorded third highest CAGR of 21% for operating income, second highest CAGR of 38% for profit after tax and third highest CAGR of 33% for EBITDA.
Company History
Our Company was incorporated under the provisions of the Companies Act, 1956 with the name "Diffusion Engineers Private Limited" pursuant to certificate of incorporation dated November 05, 1982 issued by Registrar of Companies, Maharashtra. Further, pursuant to resolutions passed by our Board of Directors at its meeting held on May 06, 1995 and by our Shareholders at the extra-ordinary general meeting held on May 17, 1995, our Company was converted into a public limited company. Consequently, our name was changed to "Diffusion Engineers Limited" and a fresh Certificate of Incorporation dated July 03, 1995, was been issued by the Registrar of Companies, Karnataka at Bangalore.
Growth Strategy
- Strategic expansion by venturing into nickel, cobalt and iron-based powder manufacturing for enhanced welding consumables portfolio.
- Expanding our geographical reach.
- Strategic Leasing and Maintenance Business Model for Heavy Equipment.
- Diversifying our Anti Wear Solutions and Heavy Engineering Equipment business into new industries.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of up to 9,405,000 Equity Shares of face value of Rs.10 each ("Equity Shares") of Diffusion Engineers Limited ("Company or "Issuer") for cash at a price of Rs. 168 per Equity Share (including a share premium of Rs. 158 per Equity Share) ("Issue Price") Aggregating up to Rs. 157.96 crores ("Issue"). This issue includes a Reservation of up to 50,000 Equity Shares of face value of Rs.10 each Aggrategating to Rs. 0.8 crores (constituting up to 0.13% of the post-issue paid-up Equity share capital) for purchase by eligible Employees (the "Employee reservation portion"). The issue less the Employee reservation portion is hereinafter referred to as the "Net Issue". The issue and the net issue would constitute 25.13% and 25%, respectively, of its post-issue paid-up Equity Share capital. The company in consultation with the brlm, offered a discount of up to 4.76% (equivalent to Rs. 8.00 per equity share) to the issue price to eligible Employees bidding in the employee reservation portion ("Employee Discount"). The face value of Equity Shares is Rs.10 each. The issue price is 16.80 times the face value of the Equity Shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Synergistic business models focused on forward integration.
- Serving industry major players directly as well as through OEMs.
- Consistent financial performance.
- Long-standing relationships with customers across industries.
- Experienced promoters and strong management team.
- The Company is increasingly dependent on a domestic market for its sales and any a downturn in it could dent its market share.
- The Company had negative cash flows during certain fiscal years in relation to its operating, investing and financing activities. Sustained negative cash flows in the future would adversely affect its results of operations and financial condition.
- The company operates 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 its manufacturing units could have material adverse effect on its business and financial condition.
- Its 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 its business, results of operations and financial condition.
- Its proposed plans with respect to funding the capital expenditure requirements as per its Objects of the Issue is subject to the risk of unanticipated delays in obtaining approvals and implementation.