Shares of Diffusion Engineers Ltd on Friday listed with a decent premium of over 15 per cent against the issue price of Rs 168 and soon hit the highest trading permissible limit for the day. The IPO, which was opened for public subscription between September 26 and September 30, received a 114.50 times subscription.
The stock made its debut at Rs 188, a jump of 11.90 per cent from the issue price on the BSE. Later, it surged 17.47 per cent to Rs 197.35 — the upper circuit limit. At the NSE, it soared 15.17 per cent to Rs 193.50 in debut trade. The stock further jumped 20.93 per cent to Rs 203.17 — the highest trading permissible limit for the day.
The company’s market valuation stood at Rs 738.61 crore.
“Diffusion Engineers Limited, which manufactures heavy machinery for core industries, wear plates and parts, and welding consumables, made a quiet stock market debut, listing for Rs 193 per share, a significant 15% premium over its issue price of Rs 168,” said Shivani Nyati, head of wealth, Swastika Investmart.
Business functions within a burgeoning industry with substantial investments in infrastructure and industrialisation, the company is positioned for future growth by prioritising forward integration and diversity, she added.
“The P/E valuation of the IPO is deemed reasonable. Those who took part in the initial public offering (IPO) may choose to hold onto their shares while keeping a careful eye on the company’s performance and the state of the market, as well as maintaining a stop loss at the issue price,” Nyati said.
The initial share sale had received bids for 75,55,15,992 shares against 65,98,500 shares on offer, as per NSE data.
The portion for non-institutional investors garnered a whopping 207.60 times subscription while Qualified Institutional Buyers (QIBs) subscribed 95.74 times the offer. The category for Retail Individual Investors (RIIs) fetched 85.61 times subscription.
The price range for the offer is Rs 159-168 per share.
Diffusion Engineers, engaged in the business of manufacturing welding consumables, wear plates & wear parts and heavy engineering machinery for core industries, has garnered Rs 47.14 crore from anchor investors.
Unistone Capital Private Limited was the manager to the offer.
