Diffusion Engineers Limited’s IPO is closing today, September 30, 2024, after opening for subscription on September 26. The book-built issue aims to raise ₹158 crores, with 0.94 crore fresh shares being offered. The price band has been set between ₹159 to ₹168 per share, with a minimum lot size of 88 shares. Retail investors would need to invest at least ₹14,784 to apply for the IPO, while Qualified Institutional Buyers (QIBs) are allotted 18,71,000 shares (19.89%), and Non-Institutional Investors (NIIs) can apply for 14,03,250 shares (14.92%). Additionally, 50,000 shares are reserved for employees at a discount of ₹8 per share.
Company Overview
Founded in 1982, Diffusion Engineers Limited is a company specializing in the manufacturing of welding consumables and heavy machinery for core industries. With four manufacturing units in Nagpur, it produces a variety of products, including welding electrodes and wear plates. The company reported a 10% increase in revenue and a significant 39% rise in profit after tax for the fiscal year ending March 31, 2024.
IPO Details and GMP Outlook
The latest Grey Market Premium (GMP) for the IPO is ₹64, suggesting an estimated listing price of ₹232 per share, potentially providing a gain of around 38.10%. Allotment results for the IPO will be finalized on October 1, and the listing is expected to take place on October 4 on both the BSE and NSE.
Investors interested in checking their allotment status can do so from October 1 onwards. They will need to enter their PAN number, application number, or DP Client ID on the designated platform. Shares will be credited to the Demat accounts of successful applicants upon allotment.
Use of Funds
The funds raised from this IPO will be used for multiple purposes:
- Expansion of the existing manufacturing facility in Khasra, Maharashtra.
- Setting up a new manufacturing facility at MIDC, Hingna, Sonegaon district, Maharashtra.
- Working capital requirements.
- General corporate purposes.
Should You Apply?
The GMP reflects positive investor sentiment, indicating a potential gain at listing. The company’s strong financials, with increased revenue and profit margins, also suggest stability and growth potential. However, like any IPO, investment decisions should consider market conditions, individual risk appetite, and long-term goals.
Before making your final decision, it’s also helpful to compare Diffusion Engineers with other current IPOs, such as KRN Heat Exchanger, to gauge which investment aligns better with your strategy.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.