Diffusion Engineers IPO subscribed over 7x on day 1 of issue, retail portion booked highest; latest GMP here | Stock Market News

Diffusion Engineers IPO: The initial public offering (IPO) of heavy welding consumable items maker Diffusion Engineers Limited was oversubscribed by over seven times on the first day of issue. The mainboard IPO of the Nagpur-based company opened for subscription on Thursday, September 26, 2024 and will close on September 30, 2024.

Diffusion Engineers aims to raise ₹158 crore by issuing fresh shares. The company has reserved not more than 20 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional institutional investors (NII), and nearly 35 per cent of the offer is reserved for retail investors. Fifty per cent was reserved for anchor investors.

Also Read: Diffusion Engineers IPO day 1: GMP, subscription status, review, other details. Good or bad for investors?

Diffusion Engineers IPO Subscription Status

On the third and final day of issue, Diffusion Engineers IPO was subscribed 7.16 times. According to BSE data, the portion reserved for QIBs was booked only 0.03 per cent, the portion reserved for NIIs was booked 6.80 times, and the portion reserved for retail investors was booked the highest at 11.24 times. The IPO received 4,72,31,624 share applications against 65,98,500 shares offered on Thursday.

Diffusion Engineers IPO Latest GMP

According to stock market experts, Diffusion Engineers IPO GMP, or grey market premium, today is ₹90 per share. This shows that Diffusion Enginners’ shares are trading higher by ₹258 in the grey market, a premium of 53.57 per cent to the issue price of ₹168 per share. 

Diffusion Engineers IPO Details

Diffusion Engineers IPO is a book-built issue of ₹158 crore, which is entirely a fresh issue of 0.94 crore shares. The company has fixed the Diffusion Engineers IPO price band at ₹159 to ₹168 per equity share. A bidder can apply in lots, and one lot of the public issue comprises 88 company shares. Unistone Capital has been appointed as the lead manager of the public issue.

Also Read: KRN Heat Exchanger IPO: Financials to cash flows—10 key risks you must know before subscribing to the ₹342-crore issue

The issue includes a reservation of up to 50,000 employee shares at a discount of ₹8 to the issue price. The allotment for the Diffusion Engineers IPO is expected to be finalised on Tuesday, October 1, 2024. Diffusion Engineers will list on BSE and NSE, with a tentative listing date fixed as Friday, October 4, 2024.

Diffusion Engineers Company Details

Diffusion Engineers Limited manufactures welding consumables, wear plates and parts, and heavy machinery for core industries. The company also offers specialised repair and reconditioning services for heavy machinery and equipment. Diffusion Engineer’s revenue increased by 10 per cent, and profit after tax (PAT) rose by 39 per cent between the financial year ending with March 31, 2024, and March 31, 2023.

Also Read: Diffusion Engineers IPO: Here’s date, size, price band and other key details

The company also trades in wear protection powders and welding and cutting machines. At its production facilities, it offers the super conditioning process, a surface treatment for machine components that increases wear resistance, eliminates stresses, and improves reparability, ultimately extending service life and reducing production costs.

Diffusion Engineers IPO Review

“India’s heavy engineering capital goods industry is estimated to be ₹3,100-3,200 billion as of fiscal 2024 and is projected to clock a CAGR of 7.5-8.5 per cent over fiscals 2023- 27 to reach ₹3,800-3,900 billion. Diffusion Engineers plans to use this growth-fuelled environment by strategically expanding into nickel, cobalt, and iron-based powder manufacturing for an enhanced welding consumables portfolio,” said domestic brokerage Master Capital Service Ltd. 

“The company also intends to expand its geographical reach and increase its exports through its subsidiaries and joint ventures. Further, the company is focusing on diversifying its anti-wear solutions and heavy engineering equipment business into new industries and providing customised solutions across various industries. Investors can invest in the IPO for the medium to long term,” the brokerage added.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.