Diffusion Engineers Limited — Capital/Financing Update 2025

Jul 16, 2025

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Date: July 16, 2025

To, To, The Manager The Manager Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex Floor 25, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai - 400 051 Dalal Street, Mumbai - 400 001 NSE Symbol: DIFFNKG BSE Scrip Code - 544264

Dear Sir/Madam,

Sub: Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure - Requirements) Regulation, 2015 Formation of Wholly Owned Subsidiary

Ref: Outcome of the Board Meeting dated February 07, 2025

With regard to the captioned matter and in compliance with Regulation 30 read with Schedule III of the Securities and Exchange Board of India (“SEBI”) (Listing Obligations and Disclosure Requirements) Regulation, 2015 (“SEBI Listing Regulations”), and in furtherance to our outcome, we hereby inform you that a wholly owned subsidiary (WOS) of the Company has been incorporated in United Arab Emirates (UAE) as per the Certificate of Incorporation / License issued on July 15, 2025.

The relevant details as required under the SEBI Listing Regulations read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024 (collectively referred to as “ SEBI Circulars ”) are enclosed as Annexure - A.

The above information will also be made available on the website of the Company at https://www.diffusionengineers.com/

You are requested to take the above information on your records.

Thanking You. Yours faithfully, For Diffusion Engineers Limited

CHANCHAL Digitally signed by CHANCHAL RAJESH RAJESH JAISWAL JAISWAL Date: 2025.07.16 13:14:33 +05'30' Chanchal Jaiswal Company Secretary and Compliance Officer Membership No. A67136 Encl.: A/a

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Annexure - A.

Disclosure under sub-para (1) i.e. Acquisition(s) (including agreement to acquire) of Para (A) of Part (A) of Schedule III read with Regulation 30 SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 and SEBI Circulars

Sr. No.	Particulars	Description
1	Name of the target entity, details in brief such as size, turnover etc.	The name of the Wholly Owned Subsidiary is “Diffusion Wear Solutions Middle East for Welding Wire Rods Electrodes and Similar Products Manufacturing LLC – S.P.C” incorporated in United Arab Emirates (UAE). Size/Turnover: Not Applicable since WOS has just incorporated and yet to commence business operations.
2	Whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at “arms-length”	Not Applicable: This Intimation is regarding the Incorporation of wholly owned subsidiary of Diffusion Engineers Limited
3	Industry to which the entity being acquired belongs	Welding Consumable
4	Objects and impact of acquisition (including but not limited to, disclosure of reasons for acquisition of target entity, if its business is outside the main line of business of the listed entity)	The Wholly Owned Subsidiary will carry on the business related to service welding and light fabrication shop to cater to Middle Eastern markets. The business of the Wholly Owned Subsidiary is not outside the main line of business of the Company.
5	Brief details of any governmental or regulatory approvals required for the acquisition	Not Applicable
6	Indicative time period for completion of the acquisition	Not Applicable

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7	consideration- whether cash consideration or share swap or any other form and details of the same	The proposed initial capital of the Wholly Owned Subsidiary will be in the form of cash.
8	Cost of acquisition and/or the price at which the shares are acquired	Not Applicable
9	Percentage of shareholding / control acquired and / or number ofshares acquired	The Company is a Wholly Owned Subsidiary of Diffusion Engineers Limited.
10	Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information (in brief)	Date of incorporation is July 15, 2025 as per the Certificate of Incorporation/ License issued on July 15, 2025 WOS is yet to commence its business operations.

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