Engineering solutions provider and Nagpur firm Diffusiin Engineers has filed its initial public offering (IPO) papers with the Security and Exchanges Board of India (SEBI) on January 1, taking another step towards launching its issue soon.
Diffusion Engineers has filed its preliminary IPO papers with SEBI in order to raise funds through an initial share sale. Meanwhile, the draft red herring prospectus (DRHP) was filed by the company on December 27.
Going by the draft papers, proceeds from the issue will be used by the company towards expansion of its existing manufacturing facility and setting up a new manufacturing facility in Maharashtra. Proceeds will also be used towards funding working capital requirements and general corporate purposes.
The Diffusion Engineers IPO will be completely of the fresh issue variety of up to 98,47,000 equity shares with a face value of ₹10 each. The sale of the shares is aimed at raising capital for the company and focusing on its expansion.
The engineering firm is planning to use ₹66.6 crore for the expansion of its Nagpur manufacturing facility, and will use ₹30.38 crore for the setting up of a new manufacturing facility in Nagpur's Sonegaon.
{{/usCountry}}The engineering firm is planning to use ₹66.6 crore for the expansion of its Nagpur manufacturing facility, and will use ₹30.38 crore for the setting up of a new manufacturing facility in Nagpur's Sonegaon.
{{/usCountry}}The amount left out of the entire issue, estimated to be around ₹22 crore, is expected to be used for the working capital requirements. Unistone Capital Pvt Ltd is the sole book-running lead manager, while Bigshare Services Pvt Ltd is the registrar for the IPO.
About Diffusion Engineers
Incorporated in 1982, Diffusion Engineers engaged in the business of providing engineering solutions to customers in domestic and international markets.
The Nagpur-based firm provides a wide range of products and services, including the manufacture of special welding consumables, wear plates and heavy engineering equipment, and provides customised repairs and reconditioning services for heavy machinery and equipment.
The company's equity shares are proposed to be listed on the BSE and National Stock Exchange (NSE). The company is estimated to launch its IPO in the first few months of 2024.