Diffusion Engineers commands robust GMP ahead of issue opening tomorrow

The initial public offer (IPO) of Diffusion Engineers will open for subscription on September 26 and will be available for public to bid till September 30.

Ahead of the issue opening, the company's shares are trading with a GMP of Rs 77 in the unlisted market. Considering the upper price band of Rs 168, the stock is commanding a premium of 46% over the IPO price.

The issue is being made through the book-building process, wherein 50% of the offer will be available for allocation on a proportionate basis to qualified institutional buyers (QIB), 15% to non-institutional investors and 35% to retail investors.


The company proposes to use the net proceeds from the IPO for funding capital expenditure requirements towards the proposed expansion of its existing manufacturing facility, setting up of a new manufacturing facility at Hingna, working capital requirements and other general corporate purposes.

Diffusion Engineers is engaged in the business of providing engineering solutions to customers both in the domestic and international market.

Over its more than forty years in operation, it diversified its offerings, encompassing a broad spectrum of products and services such as the production of specialized welding consumables, wear plates, and heavy engineering equipment for essential industries.
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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.

In the financial year 2024, the company's consolidated revenue from operations rose 10% year-on-year to Rs 285 crore, primarily attributed to an increase in revenue from welding consumables, wear plate, and from trading activities. Net profit for the same period increased 39% year-on-year to Rs 30.8 crore.

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