Diffusion Engineers lists 15% higher over IPO price on NSE; misses GMP hype

Diffusion Engineers shares listed at a premium of 15.17 per cent at Rs 193.50 on the National Stock Exchange (NSE).

Diffusion Engineers IPO listing today: Diffusion Engineers made a decent debut on the stock exchanges on Friday, October 4, amid weak overall market sentiment. Diffusion Engineers shares listed at Rs 193 on the NSE, representing a 15.17 per cent premium over the IPO issue price of Rs 168.

Simultaneously, on the BSE, Diffusion Engineers shares listed at a premium of 11.90 per cent at Rs 188 on Friday.

Thus, with these listings, the investors who were allotted Diffusion Engineers IPO shares made a profit of up to Rs 25 apiece, or over 15 per cent per share.

The listing of Diffusion Engineers shares fell below the estimated IPO GMP, although the company's shares had commanded a premium of 35.52 per cent over the IPO issue price in the grey markets ahead of listing.

Shivani Nyati, Head of Wealth at Swastika Investmart, believes that the company is well-positioned for future growth by prioritizing forward integration and diversity. She further highlighted the company's steady financial growth and expanding profits.

For those who participated in the initial public offering (IPO), Nyati recommends holding onto their shares while keeping a close eye on the company's performance and market conditions, and maintaining a stop-loss at the issue price.

Through the IPO, Diffusion Engineers offered an entirely fresh issue of 9,405,000 shares. The Diffusion Engineers IPO was available at a price band of Rs 159-168, with a lot size of 88 shares. 

The public issue ended for subscription on Monday, September 30, 2024, attracting bids for 75,54,83,608 shares against the 65,98,500 shares offered, resulting in an oversubscription of 114.49 times. This was led by Non-Institutional Investors (NIIs), who placed the highest bids among all categories and subscribed to their reserved quota at 207.60 times, followed by Qualified Institutional Buyers (QIBs), who subscribed 95.74 times, while Retail Individual Investors (RIIs) subscribed 85.61 times, according to data available on the BSE. Meanwhile, the employee quota received 95.03 times subscription.

The basis of allotment of Diffusion Engineers shares was finalised on Tuesday, October 1, 2024.

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

Diffusion Engineers proposed to utilise the net proceeds from the IPO for funding capital expenditure requirements, setting up a new manufacturing facility, and general corporate purposes.

Incorporated on November 05, 1982, Diffusion Engineers is engaged in the business of manufacturing welding consumables, wear plates, wear parts, and heavy engineering machinery for core industries.