Diffusion Engineers files draft papers with SEBI to raise funds via IPO
Diffusion Engineers, which is a provider of engineering solutions, has submitted preliminary papers to the Securities and Exchange Board of India (Sebi) to secure funds through an initial public offering (IPO).
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The IPO exclusively involves a fresh issue of up to 98,47,000 equity shares, each with a face value of ₹10, as outlined in the draft red herring prospectus (DRHP) filed on December 27.
According to the draft documents, the funds raised from the offering will be allocated by the company for the expansion of its current manufacturing facility and the establishment of a new manufacturing facility in Maharashtra.
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The generated funds will also be allocated to meet working capital needs and support general corporate objectives.
Established in 1982, Diffusion Engineers specializes in delivering engineering solutions to clients in both domestic and international markets.
Headquartered in Nagpur, the company offers an extensive array of products and services. These include the production of specialized welding consumables, manufacturing wear plates and heavy engineering equipment. Additionally, Diffusion Engineers provides tailored repair and reconditioning services for heavy machinery and equipment.
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Welding consumables market in India is estimated at around ₹46 billion in fiscal 2023, with fiscal 2026 projections around Rs 58 -60 billion. Due to the rise in demand for improved infrastructure, a lot of investment is happening in infrastructure development, such as construction of roads, bridges, ports and airports. Wear plate market in India is estimated around ₹20 billion in FY23 and is expected to grow at a CAGR of 8.5-9.5% to reach ₹26 Bn in FY26.
Unistone Capital Pvt Ltd serves as the exclusive book-running lead manager, and Bigshare Services Pvt Ltd has been appointed as the registrar for the IPO.
The company’s equity shares are slated for listing on both the BSE and the National Stock Exchange (NSE).
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Published: 01 Jan 2024, 08:52 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.