Diffusion Engineers IPO Listing Date Brings Strong Market Debut with 15% Premium
Exciting Debut for Diffusion Engineers IPO
On October 4, Diffusion Engineers Ltd. had a promising start, listing at ₹193.50 on the National Stock Exchange, reflecting a solid 15.18% premium over its IPO issue price of ₹168. This IPO, which was highly anticipated, witnessed robust demand, being oversubscribed 114.5 times from September 26 to September 30.
Market Performance and Investor Sentiment
With shares initially trading at ₹188 on the BSE, the response from both institutional and retail investors was significant, further boosting confidence in the stock. Grey market trading had previously indicated a premium of 34.52%, setting high expectations for the listing.
Expert Recommendations
- Akriti Mehrotra, Research Analyst at StoxBox, recommends holding positions for the medium to long term.
- Narendra Solanki from Anand Rathi suggests a similar long-term holding strategy for investors.
IPO Overview and Company Background
The total capital raised through this ₹158-crore IPO was significant, with anchor investors contributing ₹47.15 crore. The funds will support working capital requirements and general corporate purposes. Diffusion Engineers, established in 1982, specializes in manufacturing welding consumables, wear plates, and heavy machinery components.
Financial Performance Insights
In FY24, the company reported a 10% year-on-year increase in consolidated revenue, amounting to ₹285 crore, while net profit surged by 39% to ₹30.8 crore.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.