Diffusion Engineers listed at Rs 193.50 on the National Stock Exchange, a premium of 15% to the issue price. The stock listed at Rs 188 on BSE, a premium of 12%.
Diffusion Engineers GMP, Subscription
The company’s stocks were fetching a premium of 34% in the grey market ahead of listing on October 04. The GMP indicated a strong listing on bourses – NSE and BSE. Investors watch the unregulated market to track listing gains. The grey market is an unofficial place to trade shares. The issue was subscribed to a total of 114.50 times and the retail segment saw a strong participation with a subscription of 85.61 times.
Diffusion Engineers IPO Details
The IPO was opened on September 26 and closed on September 30. The company raised Rs 158 crore via a sale of 9.4 million shares. The allotment of shares was finalised on October 01, which could be checked on the registrar’s website. The company’s IPO price band ranged between Rs 159 – 168 per equity share. A retail investor had to bid for a minimum of one lot that contained 88 shares, making their minimum investment Rs 14,784. There were different lot sizes for small and big NIIs.
Diffusion Engineers Employee Reservation
The company kept aside up to 50,000 shares for its employees, which were offered to them at a discount of Rs 8 to the issue price.
Objectives of IPO
The funds raised will be utilised to fund capital expenditure requirements for the expansion of the existing manufacturing facility at Nagpur, Maharashtra. Also, the company will set up a new manufacturing facility in Nagpur, Maharashtra. Some raised proceeds will be utilised for funding the working capital requirements of the company whil some for other general corporate expenses.
About Diffusion Engineers
Diffusion Engineers is a producer of heavy machinery, wear plates and parts, and welding consumables for key sectors. The business provides specialist heavy machinery and equipment repair and refurbishment services. The company also trades in wear protection powders and welding and cutting machines.
Expert’s take on Diffusion Engineer’s IPO
“Over the coming years, the company plans to enhance its service delivery by robust growth and operational efficiency. At the upper price band, the company is valued at a P/E of 20.4x with a market cap of Rs 629 crore post-issue of equity shares and a return on net worth of 18.5%. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a “Subscribe” rating to the IPO,” said Anand Rathi Research in an IPO note.
BRLM and Registrar
Unistone Capital was the book-running lead manager of the Diffusion Engineers IPO, while Bigshare Services worked as the registrar