2 weeks Ago
The initial public offering (IPO) of Diffusion Engineers Ltd. was subscribed over 43 times so far on the third and final day of the bidding process, driven by a massive demand from the non-institutional investors. NSE The issue was subscribed by a whopping 43.
26 times by the NIIs while the retail category had subscribed the issue by 48.79 times. Meanwhile, the portion reserved for the qualified institutional buyers (QIBs) was subscribed 0.
50 times. Diffusion Engineers sold its shares in a fixed price band of ₹159-168. In the unlisted market, shares of the company are trading with a grey market premium (GMP) of ₹58.
Considering the upper price band of ₹168, the stock is commanding a premium of around 35% over the issue price. However, it is important to note that grey market premiums are merely indicators of how the company's shares are perceived in the unlisted market and are subject to rapid change. Diffusion Engineers has already raised ₹47.
15 crore from anchor investors ahead of the IPO. The company will use the IPO funds for its working capital requirements and the general corporate purposes. Founded in 1982, Diffusion Engineers is active in the manufacture of welding consumables, wear plates and parts, and heavy machinery for core industries.
The company offers specialised repair and reconditioning services for heavy machinery and equipment. In FY24, the company's consolidated revenue surged 10% year-on-year to ₹285 crore, driven by an increase in revenue from welding consumables, wear plate, and from trading activities. Its net profit during the same period rose 39% on-year to ₹30.
8 crore. Unistone Capital Pvt Ltd is the book-running lead manager, while Bigshare Services Pvt Ltd is the registrar to the issue. The allotment of shares is expected to be finalised on October 1, 2024.
Diffusion Engineers IPO will list on BSE, NSE with tentative listing date fixed as October 4, 2024..
