Diffusion Engineers IPO GMP: Diffusion Engineers IPO cruises through on the first day of bidding,GMP at 46%. Check details

Diffusion Engineers IPO swept through, being subscribed by 2 times, hours within the issue opened for the public. The highest demand was driven by the retail participants, followed by the non-institutional investors.

Around 11:30 am, the issue was subscribed 34 times by the retail category investors while the NIIs had subscribed the issue by 1.35 times. Meanwhile, the qualified institutional buyers (QIBs) had not bid for the issue.

Diffusion Engineers IPO price band

The company has fixed a price band of Rs 159-168 per share, where investors can bid for 88 shares in one lot.

Diffusion Engineers GMP

Ahead of the issue opening, the company’s shares are trading with a GMP of Rs 78 in the unlisted market. Considering the upper price band of Rs 168, the stock is commanding a premium of 46.5% over the IPO price.

Other details

The company proposes to use the net proceeds from the IPO for funding capital expenditure requirements towards proposed expansion of its existing manufacturing facility, setting up of a new manufacturing facility at Hingna, working capital requirements and other general corporate purposes.

Diffusion Engineers is engaged in the business of providing engineering solutions to customers both in the domestic and international market.

Also Read: Sahasra Electronics Solutions IPO opens. Check GMP, price band & other details

Over its more than forty years in operation, it diversified its offerings, encompassing a broad spectrum of products and services such as production of specialized welding consumables, wear plates, and heavy engineering equipment for essential industries.

The company also specializes in tailored repairs and reconditioning services for heavy machinery and equipment. In addition to its core offerings, Diffusion Engineers is engaged in the trade of anti-wear powders, welding, and cutting machinery.

In the financial year 2024, the company’s consolidated revenue from operations rose 10% year-on-year to Rs 285 crore, primarily attributed to an increase in revenue from welding consumables, wear plate, and from trading activities. Net profit for the same period increased 39% year-on-year to Rs 30.8 crore.

Unistone Capital is the sole book running lead manager and Bigshare Services is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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