Diffusion Engineers IPO Makes Decent Market Debut: Should You Hold, Sell or Buy?

Diffusion Engineers Limited made a decent stock market debut on October 4, listing for Rs 193 per share, a 15 per cent premium over its issue price of Rs 168. The IPO, which was opened for public subscription between September 26 and September 30, received a 114.50 times subscription.

“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.