Diffusion Engineers made a promising debut on the stock exchanges on October 4, 2024, with its shares listing at ₹193.50 on the NSE, marking a 15.2% premium over the IPO price of ₹168. This performance reflected positive market sentiment following an overwhelming response during the initial public offering (IPO). Investors who chose to apply for an IPO online witnessed substantial gains on listing day.
Diffusion Engineers IPO listing details
The shares of Diffusion Engineers opened at ₹193.50 on the National Stock Exchange (NSE), registering a 15.2% increase over the IPO price of ₹168. On the Bombay Stock Exchange (BSE), the stock debuted at ₹188, a 12% premium. The IPO, valued at ₹158 crore, was open for subscription from 26 September to 30 September 2024, with a price range of ₹159-168 per share. Those who applied for the IPO online saw strong demand and a remarkable debut on the exchanges.
IPO subscription and demand
Diffusion Engineers’ IPO saw an overwhelming subscription rate, being subscribed a massive 213.41 times. The issue received bids for 234.59 crore shares against the 1.09 crore shares on offer. Retail investors, who often apply for an IPO online, contributed significantly, with the retail portion being subscribed 96.74 times. Meanwhile, non-institutional investors (NIIs) subscribed 430.54 times, and qualified institutional buyers (QIBs) subscribed 253.04 times. The robust demand underscored the company's market appeal and its growth prospects.
Key details of Diffusion Engineers IPO
The Diffusion Engineers IPO was an entirely fresh issue of 94 lakh shares with no offer-for-sale component. The minimum investment size for retail investors was set at 88 shares, requiring a capital outlay of ₹14,784. Those who applied for IPO online were allocated shares on 1 October 2024. The IPO reserved 20% for QIBs, 15% for NIIs, and 35% for retail investors. Additionally, employees had a reserved quota of up to 50,000 shares at a discounted price of ₹8 per share.
How to apply for an IPO online for future offerings?
For investors looking to participate in future IPOs, applying online has become a seamless process. Many financial platforms offer convenient options to apply for an IPO online, allowing investors to bid from the comfort of their homes. With just a few clicks, investors can secure their participation in IPOs like Diffusion Engineers, which has proven to offer rewarding listing gains.
Purpose of the IPO and company plans
Diffusion Engineers intends to use the proceeds from the IPO to expand its manufacturing capabilities. The company plans to invest in its existing facility in Nagpur, Maharashtra, and establish a new manufacturing unit in the same region. The funds will also be used to meet working capital requirements and for general corporate purposes. The strong backing from investors, who could easily apply for an IPO online, reflects confidence in the company’s expansion strategy and future prospects.
About Diffusion Engineers Limited
Founded in 1982, Diffusion Engineers is a leading manufacturer of welding consumables, wear plates, heavy machinery parts, and other essential components for core industries. The company also provides repair and reconditioning services for heavy machinery. With four manufacturing units, Diffusion Engineers has a strong industrial presence in Nagpur. Its strong revenue growth, highlighted by a 16.6% compound annual growth rate (CAGR) in operating income from FY22 to FY24, further solidifies its position in the market.
Conclusion
Diffusion Engineers’ successful IPO and subsequent listing highlight the growing interest in industrial companies with strong fundamentals. The company's strategic use of funds and its expansion plans are expected to drive future growth. Investors who applied for IPO online reaped significant rewards on the listing day, and the future looks bright for those holding the shares long-term.
With an IPO subscription rate of over 213 times and a listing premium of 15.2%, Diffusion Engineers has set a strong precedent for future IPOs. Investors are encouraged to continue exploring the option to apply for an IPO online for such promising opportunities.
For android only