Diffusion Engineers IPO closes with nearly 114x subscription | Capital market news

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The offering received bids for 75.54 crore shares against 65.98 lakh shares on offer.

The initial public offering (IPO) of Diffusion Engineers received 75,54,83,608 shares offered against 65,98,500 shares on offer. The issue was subscribed 114.49 times.

The Qualified Institutional Buyers (QIB) category was subscribed 95.74 times. The Non-Institutional Investors (NII) category was subscribed 207.60 times. The Individual Investors (RII) category was subscribed 85.61 times.

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The issue was opened for bidding on September 26, 2024 and closed on September 30, 2024. The price band for the IPO was fixed between Rs 159 and 168 per share.

The IPO includes a fresh issue of equity shares of 9,405,000 shares with a face value of Rs 10.

Of the net proceeds of the fresh issue, approximately Rs 71.38 crore will be used to fund capital expenditure required for expansion of its existing manufacturing plant, Unit IV at Khapri (Uma) in Nagpur, Rs 30,385 crore for the establishment of a new manufacturing plant located at Hingna in Sonegaon district of Maharashtra, Rs 22 crore to finance the working capital requirements of the company and the balance for general corporate purposes.

Ahead of the IPO, Diffusion Engineers on Thursday, September 5, 2024, raised Rs 47.14 crore from key investors. The board of directors 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 along with heavy engineering machinery for core industries. It provides specialized repair and overhaul services for heavy machinery and equipment and markets anti-wear powders and welding and cutting machines.

The company offers a superconditioning process in its manufacturing facilities, a surface treatment solution for machine components that improves wear resistance, eliminates stress and improves their repairability, thereby extending their service life and reducing production costs.

The company reported consolidated net profit of Rs 30.80 crore and sales of Rs 278.14 crore for the twelve months ended March 31, 2024.

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First publication: October 1, 2024 | 4:27 p.m. STI

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