Engineering solutions provider Diffusion Engineers, on April 29, has re-filed draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) to launch initial public offerings (IPO).
The IPO consists of fresh issue of 9.85 million equity shares, each with a face value of ₹10. Additionally, eligible employees have a reserved subscription option, with those participating in this portion offered a discount.
According to market sources, the issue would be in the range of ₹125-150 crore. Earlier, the company had filed draft papers with the SEBI in December 2023 for IPO.
The company plans to allocate approximately ₹71.38 crore to finance capital expenditure needs for expanding its current manufacturing facility. Additionally, it earmarks ₹30.38 crore for establishing a new manufacturing facility in Hingna, Sonegaon District, Nagpur. Another ₹22 crore will be allocated to cover the company's working capital requirements and for general corporate purposes.
The offering is being conducted via the Book Building Process, with a provision that up to 50% of the offering will be proportionately allocated to Qualified Institutional Buyers. Additionally, a minimum of 15% of the offering will be reserved for Non-Institutional Bidders, while at least 35% will be reserved for Retail Individual Bidders.
Unistone Capital Private Limited is the sole book-running lead manager and Bigshare Services Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
Established in 1982 under the guidance of Prashant Garg, currently serving as the Managing Director, Diffusion Engineers initially concentrated on trading welding electrodes for Super-conditioning. With over four decades of experience, the company has broadened its portfolio, extending to a wide range of products and services.
This expansion encompasses the manufacturing of specialized welding consumables, wear plates, and heavy engineering equipment crucial for various industries. Moreover, the company specializes in customized repairs and reconditioning services tailored to heavy machinery and equipment requirements.
During the fiscal year 2023, the company's restated consolidated revenue from operations experienced a noteworthy 24.58% year-on-year (YoY) surge, climbing to ₹254.88 crore from ₹204.59 crore in fiscal 2022. This increase primarily stems from heightened revenue in Welding Consumables, Wear plate / Wear Parts, and Trading activities.
The rise can be chiefly attributed to a shift in production mix and an escalation in the volume of units sold. Similarly, the profit after tax for the corresponding period witnessed a robust 29.92% increase, advancing from ₹17.05 crore in fiscal 2022 to ₹22.14 crore in Fiscal 2023.
