Diffusion Engineers Limited is coming up with an IPO worth INR 158 crores, consisting of a fresh issue of 94.05 lakh shares. The company aims to meet working capital needs, set up new manufacturing facilities, purchase expansion of existing manufacturing facilities, and fund general corporate purposes. 

Diffusion Engineers IPO – Important Dates

Read more about Diffusion Engineers Limited IPO GMP

Diffusion Engineers Limited IPO  – Company Profile

The company is engaged in the business of manufacturing welding consumables, wear plates and wear parts, and heavy engineering machinery for core industries. With over four decades of experience, the company is dedicated to providing specialized repairs and reconditioning services for heavy machinery and equipment.

Diffusion Engineers Ltd IPO Fundamental Analysis 

Diffusion Engineers Ltd shows consistent revenue growth, improved profitability, and a strong balance sheet. With rising EPS and a decreasing debt-equity ratio, the company’s financial health looks solid. This makes the IPO a potentially good investment for long-term growth.

Revenue and Profitability:

Revenue increased consistently from ₹2,087.47 million in 2022 to ₹2,855.61 million in 2024, showing steady business expansion. Profit after tax saw a notable rise from ₹210.99 million in 2022 to ₹399.80 million in 2024, reflecting an improvement in profitability.

Equity and EPS:

Equity rose from ₹1,208.36 million in 2022 to ₹1,910.18 million in 2024, which strengthens the company’s financial base. The diluted EPS grew from ₹6.08 to ₹10.94 over the same period, signaling better returns for shareholders.

Return on Net Worth (RoNW):

RoNW increased from 15.10% in 2022 to 18.52% in 2024, suggesting the company is delivering increasing returns on shareholders’ equity.

Assets and Liabilities:

Total assets grew from ₹1,895.46 million in 2022 to ₹2,755.85 million in 2024, while total liabilities remained under control, decreasing slightly in 2024. This reflects a healthy balance sheet and financial discipline.

Liquidity and Debt:

The current ratio improved to 1.89 in 2024, indicating strong liquidity and the ability to meet short-term obligations. The debt-equity ratio decreased to 0.18, showing that the company has reduced its reliance on debt financing.

Diffusion Engineers IPO Financial Analysis

Diffusion Engineers Limited IPO Peer Comparison

Diffusion Engineers shows solid RoNW at 18.52% but lacks a P/E ratio, indicating growth potential. Ador Welding offers moderate performance with a fair P/E, while AIA Engineering excels in revenue, P/E, and EPS, reflecting market strength.

Diffusion Engineers Ltd IPO Objective

The main objective of Diffusion Engineers is to allocate INR 7.13 crore for expanding its Khapri manufacturing facility, INR 3.04 crore for setting up a new facility, INR 2.20 crore for working capital, and the remaining funds for general corporate purposes.

1. To fund capital expenditure towards proposed expansion: Expanding the existing manufacturing facility at Khapri, Nagpur. The company plans to utilise INR 7.13 crores for the said purpose. 

2. To set up a new manufacturing facility: The company intends to set up a new manufacturing facility in, Nagpur, Maharashtra. For the said purpose the company plans to utilise INR 3.04 crores.

3. To fund working capital requirement: The business is working capital intensive. The company requires additional working capital to fund its incremental working capital requirements. The company intends to utilise INR 2.20 crores from the net proceeds. 

4. General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations. 

Diffusion Engineers IPO Risks And Challenges

Diffusion Engineers Limited’s risks involve negative cash flows in past fiscal years, which could impact future operations and financial health. Its dependence on cyclical industries and potential customer payment defaults may further reduce profits and cash flow.

1. The Company had negative cash flows during certain fiscal years in relation to the operating, investing, and financing activities. Sustained negative cash flows in the future would adversely affect the results of operations and financial condition.

2. The 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 the business, results of operations, and financial condition.

3. The inability to collect receivables and default in payment from the customers could result in the reduction of the profits and affect the cash flows. 

Diffusion Engineers Ltd IPO – Industry & Market Potential

The manufacturing sector in India heavily relies on welding consumables as a primary technique for joining metals, as no other method offers such wide-ranging benefits. Welding consumables, which are materials that facilitate the joining of two metals or alloys, are critical components of welding operations, as the quality and strength of the joint in welding are dependent on them.

Indian domestic consumption of wear plates in fiscal 2024 was met by 80% domestic production and 20% by imports. The contribution of imports in the market was higher, but with the rise in the number of Indian manufacturers of wear plates, the sector’s imports declined.

Diffusion Engineers Limited IPO – Type of Offer

Diffusion Engineers Limited’s INR 158 crore IPO, comprising 94.05 lakh fresh shares, aims to address working capital needs, establish a new manufacturing facility, expand the existing one, and support general corporate purposes.

Diffusion Engineers IPO Offer Size

The offer size for Diffusion Engineers Limited’s IPO is INR 158 crores, comprising 94.05 lakh fresh shares. The proceeds will fund working capital, establish a new manufacturing facility, expand the existing one, and cover general corporate purposes.

Diffusion Engineers Limited IPO Allotment Structure

Diffusion Engineers Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 50,000 of the issue is reserved for eligible employees. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Eligible Employees: A portion of shares, i.e. 50,000/-  are reserved for eligible employees. 

Read more about Diffusion Engineers Limited IPO Allotment Status

How to apply for the Diffusion Engineers Limited IPO?

To apply for the Diffusion Engineers Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Diffusion Engineers Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Diffusion Engineers Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

Read more about Diffusion Engineers Limited IPO Day 1 Subscription

How do you check Diffusion Engineers Limited IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Diffusion Engineers Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Diffusion Engineers Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Diffusion Engineers Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Diffusion Engineers Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

 ● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more about Diffusion Engineers Limited IPO Day 2 Subscription

Diffusion Engineers Limited India Ltd IPO Offer Registrar

The registrar for the Diffusion Engineers Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

 Contact information for the registrar: 

Bigshare Services Private Limited

S6-2, 6th Floor, Pinnacle Business Park,

Next to Ahura Centre, 

Mahakali Caves Road, Andheri (East), Mumbai –400 093

Email: [email protected]

Website: www.bigshareonline.com 

Read more about Diffusion Engineers Limited IPO Day 3 Subscription

Diffusion Engineers IPO  – FAQs