Diffusion Engineers IPO Day 2: GMP up 54%; Should you invest or wait?

The unlisted shares of Diffusion Engineers were commanding a premium of Rs 90, which translates to a GMP of 53.57 per cent against the upper end of the IPO price of Rs 168

Diffusion Engineers IPO: The initial public offering (IPO) of Diffusion Engineers received massive demand from investors as the issue got fully booked on the first day of opening for subscription on Thursday, September 26, 2024. According to the data available on the NSE, Diffusion Engineers IPO received bids for 4,71,77,240 shares against 65,98,500 shares offered, resulting in an oversubscription of 7.15 times by the end of Thursday. Retail Individual Investors (RIIs),  and Non-Institutional Investors placed bids for 11.23 and 6.79 times, respectively. Meanwhile, the quota reserved for Qualified Institutional Buyers (QIBs), and Employees received subscriptions of 0.03,  and 16.66 times, respectively.

Adding to the buzz, the shares of Diffusion Engineers are commanding a strong premium in the unlisted markets. Sources tracking grey market activities reveal that unlisted shares of Diffusion Engineers were commanding a premium of Rs 90, which translates to a GMP of 53.57 per cent against the upper end of the IPO price of Rs 168.

The subscription window to bid for Diffusion Engineers IPO will conclude on Monday, September 30, 2024. The company has fixed the price band for the IPO at Rs 159-168, with a lot size of 88 shares. Investors can bid for a minimum of 88 shares and in multiples thereof.

Unistone Capital is the sole book-running lead manager of the Diffusion Engineers IPO, while Bigshare Services is the registrar for the issue. The company proposes to use the net proceeds from the IPO for funding capital expenditure requirements, setting up a new manufacturing facility, as well as for general corporate purposes.

The allotment for the Diffusion Engineers IPO is expected to take place on Tuesday, October 1, 2024, and subsequently, the company’s shares will be credited into demat accounts on Thursday, October 3, 2024.

Diffusion Engineers shares are likely to make their market debut on the bourses on Friday, October 4, 2024, by listing on BSE and NSE.

Diffusion Engineers IPO review

Diffusion Engineers has also garnered favourable reviews from brokerages, including Swastika Investmart and Anand Rathi Research, for the public issue. READ MORE

About Diffusion Engineers

Diffusion Engineers Limited is engaged in the business of providing engineering solutions to customers in both domestic and international markets. The company has been in existence for over four decades and provides a wide range of products and services, including the manufacture of special welding consumables, wear plates, and heavy engineering equipment for core industries. They also provide special and customised repairs and reconditioning services for heavy machinery and equipment. Additionally, the company is involved in trading anti-wear powders and welding and cutting machinery.