Diffusion Engineers IPO debuts on the exchange; closes at 21% premium

Mumbai, October 04, 2024: Shares of Diffusion Engineers Limited debuted on the exchange to close at 21% premium.

The scrip listed Rs 188 per share on BSE, a premium of 11.90% and Rs 193.50 per share on NSE, a premium of 15.18%. The company’s share price closed at Rs 197.35 per share on the BSE, a premium of 17.47% and at Rs 203.17 per share on the NSE, a premium of 20.93%.

As per NSE, the total quantity traded stood at 28.02 lakh shares, on BSE the total Quantity stood at 1.62 lakh shares. Total Turnover (BSE+NSE) on Day 1 stood at Rs 58.68 crore.

Prashant Garg, CMD – Diffusion Engineers Ltd said “We are immensely grateful to all our investors for their trust and support as we take this significant step in our journey by listing today. Your belief in our vision and commitment to our growth has been invaluable. This milestone is not just a reflection of our achievements, but also a promise to continue delivering value and excellence. Together, we look forward to a future filled with opportunities and success.”

The Market Capitalization of the Company at today’s closing price stood at Rs. 738.61 Crore as per BSE and Rs. 760.39 Crore as per NSE.

The company had offered Rs 158 crore issue for subscription from September 26 to September 30. This garnered substantial interest, and the offer was subscribed 114.50 times. Qualified Institutional Buyer and Non-Institutional Investors Portion was subscribed 95.74 times and 207.60 times respectively. Retail Portion was subscribed 85.61 times. Employee Portion was subscribed 95.05 times.

Diffusion Engineering was incorporated in the year 1982 with trading in welding electrodes for super-conditioning. From the year 1993, it started manufacturing welding electrodes. From the year 1994 to 2016, it acquired Unit I, II, III and IV for manufacturing welding electrodes, wear plates and flux cored wires, coatings for abrasion and corrosion resistances and heavy engineering equipment respectively.

The Company has over four decades of experience, it provides specialized repairs and reconditioning services for heavy machinery and equipment. Additionally, it is also involved in trading of anti-wear powders and welding and cutting machinery. It 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.

Diffusion Engineering’s revenue from operations increased 9.13% to ₹ 278.14 crore in Fiscal 2024 from ₹ 254.88 crore in Fiscal 2023, primarily driven by an increase in revenue from Wear plate / Wear parts, Heavy Engineering Equipment, Trading Activities. Profit after tax increased by 39.10% from ₹ 22.14 crore in Fiscal 2023 to ₹ 30.80 crore in Fiscal 2024.