Diffusion Engineers IPO Opens September 26

25 Sep 2024 , 01:37 PM

Diffusion Engineers will open its ₹158-Crore initial public offering (IPO) for subscription on September 26, 2024. The IPO includes a fresh issue of 9,405,000 equity shares, with no offer-for-sale component, meaning all proceeds will benefit the company directly. The price band for the IPO is set between ₹159 to ₹168 per share.

Investors must bid for a minimum of 88 equity shares, translating to a minimum investment of ₹14,784, with the maximum investment capped at ₹192,192. The company has reserved 50,000 equity shares for employees, available at a discount of ₹8 per share compared to the final issue price.

The net public issue (excluding the employee portion) allocates 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. The public issue will close on September 30, 2024, with the anchor book opening for a day on September 25.

Founded in 1982 and owned by the Garg family, Diffusion Engineers specializes in manufacturing welding consumables, wear plates, and parts for heavy engineering.

Over 90% of the company’s revenue comes from the domestic market, with the rest from exports. For FY 2024, the company reported revenues of ₹278.1 Crore, marking a 9.1% growth.

In FY 2024, the company’s profit surged 39.1% year-on-year to ₹30.8 Crore, supported by robust operating performance and an EBITDA increase of 39.4%.

The company plans to allocate ₹71.38 Crore for expanding its existing manufacturing facility, ₹30.38 Crore for a new facility, and ₹22 Crore for working capital.

Shares will begin trading on the BSE and NSE from October 4, 2024. Unistone Capital is the lead manager for the IPO, with Bigshare Services acting as the registrar.