Diffusion Engineers Limited has made its market debut today, October 4, 2024, with its IPO shares listing at a premium over the issue price. The IPO, which opened for subscription from September 26 to September 30, was offered at an issue price of ₹168 per share. The shares were listed on both the NSE and BSE, opening at a significant premium, much to the delight of investors.
Key Listing Details:
- NSE Listing Price: ₹193.50, marking a 15.1% increase over the issue price.
- BSE Listing Price: ₹188, an 11.9% rise over the issue price.
This positive listing contrasts with the previous track record of the Lead Manager (LM), which has often seen listings below half of the premium. The shares were estimated to list at around ₹226 per share based on the Grey Market Premium (GMP), suggesting a 34.52% premium to the issue price. However, they opened slightly lower than this expected price, listing at a premium of around 25%.
Financial Performance & Demand
The Diffusion Engineers IPO received robust demand, with the subscription rate exceeding 114 times, indicating strong investor interest. The company’s strong financials have been a key driver for this demand:
- The company has experienced a compound annual growth rate (CAGR) of 16.6% in operating income between FY22 and FY24.
- Profit after tax (PAT) increased significantly, from ₹170.5 million in FY22 to ₹308.0 million in FY24.
Industry Ranking
Diffusion Engineers stands among the top three industry players in terms of CAGR for operating income, profitability, and EBITDA between FY21 and FY24. The company’s financial performance and growth prospects have been pivotal in driving investor sentiment, leading to the strong listing today.
