Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
IPO News

| More

Diffusion Engineers files DRHP with SEBI for IPO

Posted On: 2024-01-02 17:36:00 (Time Zone: IST)


Diffusion Engineers Ltd, engaged in the business of providing engineering solutions to customers both in domestic and international market has filed its draft red herring prospectus (DRHP) papers with capital markets regulator Securities and Exchange Board of India (SEBI) to mop up funds through an initial public offering (IPO).

The company plans to raise funds through offer of equity shares (face value ?10 each) through initial public offerings. The initial share sale is a complete fresh issuance of 9.84 million equity shares.

The Issue is being made through the Book Building Process, wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders.

Diffusion Engineers was established in 1982. Initially, the company was focused on trading welding electrodes for Super-conditioning. Over its more than forty years in operation, it diversified its offerings, encompassing a broad spectrum of products and services such as production of specialized welding consumables, wear plates, and heavy engineering equipment for essential industries. The company also specializes in tailored repairs and reconditioning services for heavy machinery and equipment.

In addition to its core offerings, Diffusion Engineers is engaged in the trade of anti-wear powders, welding, and cutting machinery. One of its key services is the super conditioning process conducted at its manufacturing facilities. This process offers a surface treatment solution for machine components, significantly enhancing wear resistance, alleviating stress, and improving repair capabilities. Consequently, this leads to extended lifespans for industrial parts, fostering smoother functionality, and reducing production costs.

The company has established a seamless forward integration system. This involves the manufacture of special purpose electrodes and flux cored wires, which are utilized in creating wear-resistant plates (commonly known as wear plates). These plates are essential components in the manufacturing of a majority of large industrial equipment within its heavy engineering division. They significantly contribute to the production of industrial equipment for core sectors such as Cement, Steel, Power, Mining, Engineering, Oil & Gas, and Sugar. This integration fosters efficiency in the production process, offering competitive advantages, reducing product costs, exerting control over raw material supplies, and decreasing reliance on third-party operations.

Diffusion Engineers places a strong emphasis on alloy and process development, quality, and design. This focus has enabled the company to tailor products precisely to meet its customers' diverse requirements. Leveraging its expertise, it can design, develop, and manufacture intricate and specialized industrial equipment and components for both OEMs (Original Equipment Manufacturers) and end-user industries.

Presently, the company operates from four manufacturing units, with three located in Nagpur Industrial Area and Hingna, and the fourth in Khapri (Uma). Furthermore, it has extended its reach internationally through subsidiaries in Singapore and the Philippines, as well as Joint Ventures/Associates in the United Kingdom and Malaysia.

Following the proposed expansion plans, the new unit is anticipated to boast an estimated aggregate installed capacity, and will include 600 Metric Tons per annum for welding electrodes and a CR Coil Slitting Line capable of managing 1200 MTPA. Concurrently, the expanded Unit, encompassing the existing plant capacity, is projected to operate at a capacity of 4920 Metric Tons per annum for wear plates, 1080 Metric Tons per annum for Flux Cored Wires, and 12000 Metric Tons per annum for heavy Engineering Fabrication. Both units are scheduled to become operational from September 2025 onwards.

In the financial year 2023, the company's restated consolidated revenue from operations rose 24.58% year-on-year (YoY) to Rs 254.88 crore primarily attributed to an increase in revenue from Welding Consumables, Wear plate / Wear Parts, and from Trading activities. This increase was majorly attributed due to increase in production mix and increase in volume of units sold in these products, and profit after tax for the same period rose 29.92% to Rs 22.14 crore. In last ten years, revenue from operations and PAT has registered a CAGR of 12.03 % and 9.70%.

For the three months ended June 30, 2023, revenue from operations stood at Rs 65.85 crore and profit after tax stood at Rs 6.25 crore.

Among its listed peers, between fiscal 2021-23, the Company recorded third highest CAGR of 28% in operating income, second highest CAGR of 38% in profit after tax and fourth highest CAGR of 31% in EBITDA, according to a CRISIL Report mentioned in the DRHP.

Welding consumables market in India is estimated at around Rs 4600 crore in fiscal 2023, with fiscal 2026 projections around Rs 5800-6000 crore. The Indian heavy engineering capital goods industry is estimated to be Rs 2.65-2.75 trillion as of FY23 and is projected to clock a CAGR of 7-8% over FY23-26. The industry expected to reach Rs 3.3-3.4 trillion in size by FY26. Heavy electrical engineering, earthmoving, construction and Mining Machinery, and Process Plant Equipment are the largest segments of the industry.

Unistone Capital Private Limited is the sole book running lead manager and Bigshare Services Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.


Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Jungle Camps India Limited plans to raise around Rs. 30 crores from IPO

Afcons Infrastructure Ltd's IPO to open on Friday, October 25, 2024, price band set at ₹440/- to ₹463/- per Equity Share

Senores Pharmaceuticals gets Sebi nod for IPO

Telangana-based Standard Glass Lining Technology Limited gets Sebi nod for IPO

Dr. Agarwal's Health Care files DRHP for IPO

Icon Facilitators Limited files DRHP with BSE SME

Casagrand Premier Builder Limited files DRHP for Rs 1,100 crore IPO

Manba Finance Limited raises Rs. 45.25 crore from Anchor Investors

NTPC Green Energy Ltd files DRHP for IPO

Influx Healthtech Limited Files DRHP with NSE Emerge

Gala Precision Engineering IPO subscribed 201.41 times on Final Day, the most since the start of FY25

Identical Brains Studios Limited files DRHP with NSE Emerge

Gala Precision Engineering Ltd's IPO to open on Monday, September 02, 2024, price band set at ?503/- to ?529/- per Equity Share

Sanstar Limited IPO subscribed 82.98 times on Final Day

Sanstar Ltd's IPO to open on Friday, July 19, 2024, price band set at ?90/- to ?95/- per Equity Share

Three M Paper Boards Ltd's SME IPO to open on Friday, July 12, 2024

Virtual Galaxy Infotech attracts marquee investors, raises Rs 21.44 Crore ahead of IPO Launch

IT Solutions provider Orient Technologies gets Sebi nod for IPO

Accel and Flipkart-backed Zinka Logistics Solutions Limited files DRHP for IPO

Sleepwear-focused company S D Retail Limited files DRHP for SME IPO

ACME Solar Holdings Limited files DRHP for Rs 3,000 crore IPO

Nephro Care India Makes History - First SME IPO to Surpass Rs. 20,000 Crore in bids

Gala Precision Engineering gets Sebi nod for IPO

Noida-based Interarch Building Products Limited gets SEBI nod for IPO

Shivalik Engineering Industries Limited files DRHP for IPO

Niva Bupa files for Rs 3,000Cr IPO

Sagility India Limited files DRHP for IPO

Ambey Laboratories Ltd IPO to open for subscription on July 4, 2024

Nephro Care India Limited IPO opened today, Anchor Book fully subscribed

Allied Blenders & Distillers IPO subscribed 23.49 times on Final Day

Allied Blenders & Distillers IPO fully subscribed on Day 2

Allied Blenders & Distillers IPO subscribed 51% on Day 1

Stanley Lifestyles IPO subscribed 95.75 times on Final Day

Deepak Parekh-backed Nephro Care India Limited's IPO opens on Friday, June 28

Allied Blenders & Distillers Limited raises Rs. 449.1 crore from Anchor Investors

Stanley Lifestyles IPO subscribed 5.22 times on Day 2

Mason Infratech Limited IPO Opens on June 24, 2024

Stanley Lifestyles IPO fully subscribed on Day 1 led by strong retail, NII demand

Stanley Lifestyles Limited raises Rs. 161.10 crore from Anchor Investors

Allied Blenders & Distillers Ltd's IPO to open on Tuesday, June 25, 2024

GEM Enviro Management Limited IPO Opens on June 19, 2024

Stanley Lifestyles Limited's IPO to open on Friday, June 21, 2024

Bajaj Housing Finance Ltd files DRHP for IPO

Bajaj Housing Finance Limited to raise funds through IPO

Kronox Lab Sciences IPO subscribed 117.25 times on Final Day

Kronox Lab Sciences IPO fully subscribed in less than half an hour of opening

Kronox Lab Sciences Limited raises Rs. 39.04 crore from Anchor Investors

Sattrix Information Security Limited SME IPO to open on June 5, price band set at ?121 per share

Kronox Lab Sciences Ltd's Initial Public Offering to open on Friday June 3, 2024

Aimtron Electronics Limited's SME IPO to open on Thursday, May 30, 2024


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020