The Initial Public Offering of Diffusion Engineers Limited was subscribed 7.16 times on the first day of bidding led by Employee and Retail.
The issue received bids of 4,72,31,624 shares against the offered 65,98,500 equity shares, at a price band of ₹159-₹168, according to the data available on the stock exchanges.
Retail Portion and Non-Institutional Investors Portion were subscribed 11.24 times and 6.80 times respectively, whereas Qualified Institutional Buyer Portion was subscribed 0.03 times and Employee Reserved portion subscribed 16.67 times. The issue kicked off for subscription on Thursday, September 26, 2024, and will close on Monday, September 30, 2024.
A day before its issue opening, Diffusion Engineers Limited raised Rs 47.14 crores from anchor investors. Institutions who participated in the anchor were HDFC Mutual fund through HDFC Defence & Dividend Yield Fund, Prashant Jain backed 3P India Equity Fund 1, Saint Capital Fund, Craft Emerging Market Fund PCC – Elite Capital Fund.
Leading brokerage firms such as Canara Bank Securities, BP Wealth, StoxBox, Swastika Investmart, and Ventura Securities have given a “subscribe” rating to the issue, citing the high potential for growth in the Indian market for welding consumables. Diffusion Engineers Limited has invested in R&D to differentiate its products from competitors, operating a DSIR-approved facility that focuses on refining processes and testing materials to meet client-specific needs. With subsidiaries in Singapore, Malaysia, and Turkey, the company is targeting new regions while continuing to build long-term relationships with its domestic and international customers. Diffusion Engineers Limited appears attractively priced with a P/E ratio of 15.36x, significantly lower than the industry average of 32.86x.
Unistone Capital Private Limited is the sole book running lead manager, and Bigshare Services Private Limited is the registrar of the issue. The Equity Shares are proposed to be listed on BSE and NSE.