The initial public offering (IPO) of Diffusion Engineers saw robust interest from investors, subscribing 27.19 times on its second day of bidding, September 27. A total of 17.94 crore equity shares were applied for, against the IPO size of 65.98 lakh shares.
The company, which manufactures welding consumables, wear plates and parts, and heavy engineering machinery, launched its public issue on September 26 to raise ₹158 crore, with a price band set between ₹159 and ₹168 per share.
Non-institutional and retail investors led the bidding, subscribing 47.08 times and 36.64 times the portions allocated to them, respectively. In contrast, qualified institutional buyers showed weaker interest, subscribing only 0.28 times their allotted quota.
The company has allocated half of its issue size for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors, along with reserving 50,000 equity shares for its employees, which were subscribed 36.64 times.
Diffusion Engineers specializes in repairs and reconditioning services for heavy machinery and equipment, and also trades in anti-wear powders, welding, and cutting machinery. Their wear plates are crucial in industries such as power generation, steel manufacturing, quarrying, and cement.
The company plans to utilize the entire net proceeds from the fresh issue (excluding IPO expenses) to expand its existing manufacturing facility and establish a new facility in Nagpur, Maharashtra. Additional funds will be allocated for working capital and general corporate purposes.
In the grey market, Diffusion Engineers’ IPO shares are trading at a premium of over 40% above the upper price band, according to market observers.
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