Diffusion Engineers’ IPO opened on September 26 and aims to Rs 158 crore by selling 9.4 million fresh shares. The IPO will close on September 30. Diffusion Engineers is the manufacturer of welding consumables, wear plates and parts, and heavy machinery for core industries. According to the company, the raised proceeds will be used to fund capex for the expansion of manufacturing units, setting up a new manufacturing unit in Nagpur, and for fund the company’s capital requirement.
Diffusion Engineers IPO Price Band
The price band for Diffusion Engineers IPO ranges between Rs 159 -168 per equity share. The allotment of shares will be finalised on October 01. The listing will likely take place on NSE and BSE on October 04. Further, one can increase the chance of allotment by applying through employee quota, with the condition of being an employee of the company. The issue has reserved 50,000 shares for the employees of the company, offered to them at a discount of Rs 8 per equity share.
Minimum Investment Required
A retail buyer needs to bid for a minimum of one lot that contains 88 shares, amounting to Rs 14,784. There are different lot sizes for small and big investors, starting from Rs 2,06,976.
Diffusion Engineers GMP
The IPO is attracting a premium of almost 48% in the grey market. It is an unregulated platform to trade shares. Market participants keep an eye on GMP to track listing gains. It gives investors an idea of the potential gains or losses that the stock might attract on listing day. It is also indicative of the confidence that investors may or may not have in a specific stock.
About Diffusion Engineers
The company offers specialized repair and reconditioning services for heavy machinery and equipment. The company also trades in wear protection powders and welding and cutting machines. At its production facilities, the company 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.
Expert’s take on Diffusion Energy
“Over the coming years, the company plans to enhance its service delivery by robust growth and operational efficiency. At the upper price band company is valuing at a P/E of 20.4x with a market cap of Rs 6,290 million 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 in a research report.
BRLM and Registrar
Unistone Capital was the book-running lead manager of the IPO, while Bigshare Services was the registrar for the issue.