The ₹158-crore initial public offering (IPO) of Diffusion Engineers saw full subscription on the first day of bidding, September 26, reflecting strong investor interest. A total of 4.72 crore equity shares were purchased, oversubscribing the offer size of 65.98 lakh shares by 7.16 times.
Diffusion Engineers, a company specializing in repairs and reconditioning services for heavy machinery and equipment, aims to raise ₹158 crore entirely through a fresh issue at the upper price band of ₹159-168 per share. As a result, all IPO proceeds (excluding issue expenses) will go directly to the company.
Retail investors led the charge, bidding 11.24 times their allotted quota, followed by non-institutional investors at 6.8 times. Meanwhile, qualified institutional buyers subscribed to only 3% of the portion reserved for them.
Company employees also showed strong interest, purchasing 8.33 lakh shares—16.67 times more than their reserved quota of 50,000 shares. They will receive shares at an ₹8 discount per share from the final issue price.
The Maharashtra-based manufacturer of welding consumables, wear plates and parts, and heavy engineering machinery raised ₹47.15 crore through its anchor book on September 25. Four institutional investors, including HDFC MF’s Defence and Dividend Yield Funds, bought 28.06 lakh shares at ₹168 per share.
The IPO proceeds will be used for expanding the company’s current manufacturing facility, establishing a new facility in Nagpur, Maharashtra, and covering working capital needs and general corporate purposes.
In the grey market, Diffusion Engineers’ IPO shares attracted significant attention, with the shares trading at a 50% premium, up from 45% before the issue opened. Trading of the shares will begin on BSE and NSE on October 4.
The IPO closes on September 30.
