The initial public offer (IPO) of Diffusion Engineers received 75,54,83,608 bids for shares as against 65,98,500 shares on offer. The issue was subscribed 114.49 times.
The Qualified Institutional Buyers (QIBs) category was subscribed 95.74 times. The Non Institutional Investors (NIIs) category was subscribed 207.60 times. The Retail Individual Investors (RIIs) category was subscribed 85.61 times.
The issue opened for bidding on 26 September 2024 and it closed on 30 September 2024. The price band of the IPO was fixed between Rs 159 to 168 per share.
The IPO comprises fresh issue of equity shares of 9405000 equity share of Rs 10 face value.
Of the net proceeds from the fresh issue, about Rs 71.38 crore will be used for funding capital expenditure requirements towards expansion of its existing manufacturing facility Unit IV at Khapri (Uma) in Nagpur, Rs 30.385 crore towards setting up of a new manufacturing facility located at Hingna in Sonegaon District of Maharashtra, Rs 22 crore towards funding working capital requirements of the company and balance for general corporate purposes.
Ahead of the IPO, Diffusion Engineers on Thursday, 5 September 2024, raised Rs 47.14 crore from anchor investors. The board allotted 28.06 lakh shares at Rs 168 each to 5 anchor investors.
Diffusion Engineers, promoted by Prashant Garg, manufactures welding consumables, wear plates and wear parts and heavy engineering machinery for core industries. It provides specialized repairs and reconditioning services for heavy machinery and equipment and trades anti-wear powders and welding and cutting machinery.
The company provides super conditioning process at its manufacturing facilities, a surface treatment solution for machine components that enhances wear resistance, eliminates stress and improves their repairability ultimately extending their lifespan and reducing production costs.
The firm reported a consolidated net profit of Rs 30.80 crore and sales of Rs 278.14 crore for the twelve months ended on 31 March 2024.