Diffusion Engineers IPO listing date today; GMP, experts signal up to 35% listing gains

Diffusion Engineers IPO Listing: Diffusion Engineers shares are set to make their stock market debut today after receiving strong demand for its initial public offering (IPO). Diffusion Engineers IPO listing date is today, October 4.

Diffusion Engineers IPO was opened for subscription from September 26 to 30. The IPO allotment was fixed on October 1 and the Diffusion Engineers shares will be listed today.

“Trading Members of the Exchange are hereby informed that effective from Friday, October 4, 2024, the equity shares of Diffusion Engineers Limited shall be listed and admitted to dealings on the Exchange in the list of ‘T’ Group of Securities,” said a BSE notice.

Diffusion Engineers shares will be in the Trade-for-Trade segment for 10 trading days. The stock will be a part of the Special Pre-open Session (SPOS) on Friday, October 4, and will be available for trading from 10:00 AM.

Diffusion Engineers shares are showing a strong trend in the grey market. Experts also signal that the Diffusion Engineers IPO listing would be at a decent premium.

Diffusion Engineers IPO GMP Today

Diffusion Engineers shares are commanding a decent premium in the grey market. Diffusion Engineers IPO GMP today, or grey market premium today, ahead of the share listing is ₹58 per share, according to stock market analysts. This shows that in the grey market, the Diffusion Engineers shares are trading higher by ₹58 than their issue price.

Diffusion Engineers IPO Listing Price

Considering the IPO GMP today, the estimated Diffusion Engineers IPO listing price is ₹226 per share, which is at a premium of 34.52% to the issue price of ₹168 per share.

Stock market analysts also expect Diffusion Engineers IPO listing at a decent premium given the robust demand for shares and strong financials of the company.

“Diffusion Engineers Ltd has garnered considerable attention for its IPO, with a subscription rate surpassing 114 times. The company is poised for a strong stock market debut on October 4, 2024, with an anticipated premium of approximately 33% over the upper price band,” said Akriti Mehrotra, Research Analyst, StoxBox.

Diffusion Engineers ranks among the top three industry players in terms of CAGR for operating income, profitability, and EBITDA between FY21 and FY24. The company demonstrated substantial revenue growth from FY22 to FY24, with a CAGR of 16.6%. The company’s profit after tax (PAT) also rose significantly, from ₹170.5 million in FY22 to ₹308.0 million in FY24.

“We thus recommend that investors allotted shares consider holding their positions from a medium to long-term perspective,” Mehrotra added.

According to Arun Kejriwal, Founder at Kejriwal Research and Investment Services Diffusion Engineers IPO listing will be positive but not in the range that the grey market is showing. 

“The grey market premium has dried up after the close of subscription and has remained in the ₹55 to ₹60 range. But, I am expecting Diffusion Engineers IPO listing price to be in the ₹200 to ₹210 range, around 25% higher from the upper price band of ₹168 per equity share. Bearish trend in the secondary market is also a factor that is going to play in Diffusion Engineers share listing,” Kejriwal said.

Diffusion Engineers IPO Details

Diffusion Engineers IPO opened for subscription on September 26, and closed on September 30. The IPO allotment was finalized on October 1, and the Diffusion Engineers IPO listing date is today, October 4. Diffusion Engineers shares will be listed on both the stock exchanges, BSE and NSE.

Diffusion Engineers IPO price band was set at ₹159 to ₹168 per share. At the upper-end of the price band, the company raised ₹158 crore from the book-built issue which was entirely a fresh issue of 94.05 lakh shares.

Diffusion Engineers IPO received 114.49 times subscription in total, as per NSE data. The public issue was subscribed 85.61 times in the retail category, 95.74 times in the Qualified Institutional Buyers (QIBs) category, and 207.60 times in the Non Institutional Investors (NII) category.

Unistone Capital Pvt Ltd is the book running lead manager of the Diffusion Engineers IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.