Diffusion Engineers IPO day 1: GMP, subscription status, review, other details. Good or bad for investors?

Diffusion Engineers IPO: Bidding for the initial public offering (IPO) of Diffusion Engineers Limited has opened today. The public issue will remain open for bidders till 30th September 2024, i.e. Monday next week. The company has fixed the Diffusion Engineers IPO price band at ₹159 to ₹168 per equity share. The welding consumable items maker company aims to raise ₹158 crore by issuing fresh shares. Meanwhile, on the Diffusion Engineers IPO subscription opening date, company shares are available at a premium of ₹78 in today's grey market.

Diffusion Engineers IPO subscription status

By 3:33 PM on day 1 of bidding, the public issue had been subscribed 5.88 times, the retail portion of the book build issue had been booked 9.54 times, and the NII segment had been filled 4.86 times.

Important Diffusion Engineers IPO details

1] Diffusion Engineers IPO GMP today: According to stock market observers, shares of the company are available at a premium of ₹78 in the grey market today.

2] Diffusion Engineers IPO price: The company has a fixed price band for the public issue, at ₹159 to ₹168 per equity share.

3] Diffusion Engineers IPO date: The book build issue has hit the Indian primary market today and will remain open until 30th September 2024.

4] Diffusion Engineers IPO size: The company aims to raise ₹158 crore from this initial public offer.

5] Diffusion Engineers IPO lot size: A bidder can apply in lots, and one lot of the public issue comprises 88 company shares.

6] Diffusion Engineers IPO allotment date: The most likely date for share allocation is 1st October 2024, Tuesday next week.

7] Diffusion Engineers IPO registrar: Bigshare Services Private Limited has been appointed official registrar of the public offer.

8] Diffusion Engineers IPO listing date: The book build issue is proposed for listing on the BSE and the NSE. The most likely date for share listing is 4 October 2024, as 2 October will be a non-trading day.

9] Diffusion Engineers IPO lead managers: Unistone Capital has been appointed Lead Manager of the public issue.

Diffusion Engineers IPO: Apply or not?

10] Diffusion Engineers IPO review: Giving a 'subscribe' tag to the book build issue, Akriti Mehrotra, Research Analyst, StoxBox, said, "Diffusion Engineers, a manufacturer of welding consumables, wear plates, wear parts, and heavy engineering machinery, follows a synergistic business model by focusing on forward integration which gives them a competitive edge and broadens its scope in the industry. With a diverse customer base of OEMs and direct domestic and international customers, Diffusion Engineers demonstrates its ability to meet the specific needs of major players in sectors like cement, steel, and power. To meet the growing demand for its products emanating from rapid industrialization and increasing demand for improved infrastructure, the company is also strategically planning to expand its manufacturing capacity."

"On the financial front, the company posted strong CAGR for operating income, profitability, and EBITDA between FY21 and FY24. With the issue priced at a P/E of 11.7x on the upper price band based on FY24 earnings, which is relatively lower compared to its peers, we recommend investors to subscribe to this issue from a medium to long-term investment perspective," the StoxBox expert said.

Advising the Indian primary market investors to apply, Anshul Jain, Head of Research at Lakshmi Shree Investment and Securities, said, "In the financial year 2024, Diffusion Engineers reported a 10% year-on-year increase in consolidated revenue, reaching ₹285 crore. Increased sales in welding consumables, wear plates, and trading activities drove this growth. Net profit surged 39% year-on-year, totalling ₹30.8 crore."

The Lakshmi Shree expert said the company's diverse portfolio includes specialized welding consumables, wear plates, and heavy engineering equipment. They also provide repair and reconditioning services for heavy machinery and trade in anti-wear powders, welding, and cutting machinery.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.