Diffusion Engineers Ltd GMP 2024 Highlights: The Diffusion Engineers IPO allotment will be finalised on October 1. All eyes are on that key data. IPO allotment for retail investors is mostly via a random lottery on the computer. This is because the shares on offer are significantly less than the application received. At the end of day 3 on September 30, the Diffusion Engineers IPO was subscribed 114 times. The retail segment alone is subscribed to 85x.
The Diffusion Engineers IPO is commanding a GMP or Grey market premium of Rs 60. This essentially means a premium of over 35% and the counter is expected to list at Rs 228 (upper limit of issue price at Rs 168 + today’s GMP of Rs 60).
Diffusion Engineers Ltd 2024 Highlights: Check Listing, GMP, Review, Subscription Status
The Company intends to allocate the net proceeds from the IPO for the following purposes:
1. Expansion of Manufacturing Facility: Funding capital expenditures related to the expansion of the existing manufacturing facility located at Khasra No. 36, 38/1, 38/2, 38/3, Khapri (Uma), Nagpur-441 501, Maharashtra, India.
2. Establishment of New Manufacturing Facility: Setting up a new manufacturing facility at Plot Nos. 33-B/1/1/ & 33-B/1/1/Part, MIDC, Hingna, Sonegaon District, Nagpur-440 016, Maharashtra.
3. Working Capital Requirements: Addressing the company’s working capital needs.
4. General Corporate Purposes: Supporting various general corporate initiatives.
Established in 1982, Diffusion Engineers Limited is a prominent player in the manufacturing of welding consumables, wear plates, components, and heavy machinery, serving core industries.
In addition to its manufacturing capabilities, the company provides specialized repair and reconditioning services for heavy machinery and equipment. It also deals in wear protection powders as well as welding and cutting machines. At its production facilities, Diffusion Engineers Limited utilizes the “Super Conditioning” process, a surface treatment technique that enhances the wear resistance of machine components, relieves stress, and improves reparability. This process ultimately extends the lifespan of machinery and reduces production costs.
Diffusion Engineers Limited operates four manufacturing units. Units I, II, and III are located within the Nagpur Industrial Area, Hingna, Nagpur, Maharashtra. Unit IV, located in Khapri (Uma), Nagpur, Maharashtra, focuses on the processing and production of the company’s products. Each unit contributes to different aspects of the company’s manufacturing operations.
the minimum and maximum investment amounts for retail investors and High Net-worth Individuals (HNIs) in terms of both the number of shares and the corresponding investment amount.
Investors can place bids starting with a minimum of 88 shares and in multiples thereafter. The table below outlines the minimum and maximum investment amounts for retail investors and High Net-worth Individuals (HNIs) in terms of both the number of shares and the corresponding investment amount.
The Diffusion Engineers IPO is set to open on September 26, 2024, and will close on September 30, 2024.
Shares of Manba Finance closed the counter 5% higher at Rs 152.25 from its opening price of Rs 145. The company’s stock was listed at a price of Rs 145, a premium of 21% from its issue price of Rs 120.
Consolidation of manufacturing units in one single city: The company operate from four manufacturing facilities all of which are located in Nagpur, Maharashtra. “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 our manufacturing units could have material adverse effect on our business and financial condition,” said Diffusion Engineers in its DRHP filed with SEBI.
Diffusion Engineers has exhibited consistent financial growth over the past few years, with revenue increasing from Rs 87.84 crore in FY 2013 to Rs 257.13 crore in FY 2024, reflecting a CAGR of 10.26% over the last 11 years. Profit After Tax (PAT) also grew from Rs 7.32 crore to Rs 23.40 crore, marking a CAGR of 11.14% during the same period.
Notably, Diffusion Engineers outperformed many industry peers with a 21% CAGR in operating income between FY 2021 and FY 2024, ranking third in the industry. Furthermore, the company achieved an impressive 38% CAGR in profit after tax and a 33% CAGR in EBITDA during this period, highlighting its strong profitability and efficient cost management.
The grey market premium (GMP) for Diffusion Engineers’ initial public offering (IPO) remains strong as the subscription period concludes today, September 30, 2024. Unlisted shares of the company are currently trading at a premium of Rs 58, indicating a 34.52% increase over the IPO’s upper price band of Rs 168, according to sources monitoring grey market activity.
The initial public offering (IPO) of Diffusion Engineers Ltd was subscribed 45.73 times by the third day of the bidding process, as of 11:24 IST, according to BSE data. The IPO received bids for 30.17 crore shares against the 65.98 lakh shares on offer.
Retail investors oversubscribed their portion by 50.21 times, while non-institutional investors subscribed 95.34 times. The qualified institutional buyers (QIBs) section saw a 51% subscription, and the employee portion was oversubscribed by 52.81 times.
Diffusion Engineers IPO closes for bidding on September 30. The company kept the IPO price band in a range of Rs 159 to Rs 168 per equity share.