The Maharashtra-based welding equipment manufacturer Diffusion Engineers Limited has filed a draft red-herring prospectus (DRHP) for its Initial Public Offering (IPO) with the market regulator Securities and Exchanges Board of India (SEBI). As per the DRHP on SEBI’s website, the IPO will comprise entirely of a fresh issue of 98,47,000 equity shares. The face value of the equity shares is Rs 10 whereas the issue price will be determined later through a book-building process. The issue size, dates and price band details are yet to be finalised by the company. The company will list on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) of India.
Unistone Capital Private Limited is the book running lead manager for the issue whereas Bigshare Services Private Limited is the registrar.
A maximum of 50% of the net issue will be reserved for Qualified Institutional Buyers (QIBs). At least 15% portion will be reserved for the Non-institutional investors (NIIs) and retail portion on offer will be up to 35% of the net issue.
The company provides engineering solutions to domestic as well international clients with its products and solutions ranging from manufacturing of welding consumables, wear plates and heavy engineering equipment to customized repairs and reconditioning services of heavy machinery and equipment. The company has completed 10,373 projects across 48 countries, as per its website.
Diffusion Engineers Limited had reported a profit of Rs 22.15 crore over a net revenue of Rs 254.9 crore in FY23 as compared to a profit of Rs 17 crore on a revenue of Rs 204.6 crore in FY22. In Q1FY24, the company posted a revenue of Rs 65.8 crore and a profit of Rs 6.25 crore.
According to the documents, the funds from the net proceeds of the issue will go towards expansion, meeting working capital requirements and general corporate expenses. Rs 66.6 crore from the issue will be put towards expansion of its existing facility in Nagpur’s Khasra region whereas another Rs 30.38 crore will be used for setting up a new manufacturing facility in Nagpur’s Sonegaon region.
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