Diffusion Engineers IPO oversubscribed 15 times on day 2 so far. Ipo Gmp Stand at 55 (32.74%)

Driven by strong demand from non-institutional investors (NIIs) and retail participants, the Diffusion Engineers IPO was subscribed 15.35 times by the second day of the bidding process. As of around 1 PM, retail investors led the charge, subscribing to the issue by 21.6 times, while NIIs followed closely with 21 times the subscription. Meanwhile, the portion reserved for Qualified Institutional Buyers (QIBs) saw bids for 76,032 shares, representing 4% of the 18.71 million shares allocated for this category.

Diffusion Engineers IPO Price Band and Lot Size

Diffusion Engineers has set the IPO price band between ₹159 and ₹168 per share, with a minimum bid requirement of 88 shares per lot. This price range reflects the company’s valuation and provides investors the opportunity to secure shares within this band.

Strong Grey Market Premium (GMP)

Before the IPO opened for public bidding, Diffusion Engineers’ shares were trading at a Grey Market Premium (GMP) of ₹90 in the unlisted market, up from ₹78 the previous day. With the maximum price band set at ₹168, the GMP represents a premium of 53.6% over the IPO price, highlighting strong demand and positive market sentiment for the company’s shares.

Use of IPO Proceeds

The company plans to utilize the net proceeds from the IPO for several key purposes. A significant portion will be directed towards capital expenditure for the proposed expansion of the existing manufacturing facility. Additionally, the company intends to establish a new factory in the Hinjewadi district. Other allocations include meeting capital requirements and funding general corporate purposes, which are expected to enhance overall operational efficiency and drive future growth.

About Diffusion Engineers

Diffusion Engineers has a long-standing history, providing engineering solutions to both domestic and international clients. With over 40 years in operation, the company has diversified its product and service portfolio to include the production of specialized welding equipment, wear plates, and heavy engineering machinery. It also offers custom repair and reconditioning services for heavy machinery and devices.

In addition to its core offerings, Diffusion Engineers is involved in trading anti-wear powders, welding machines, and cutting equipment, further broadening its market reach. The company serves a wide range of industries that require durable, high-performance engineering solutions.

Financial Performance

In the financial year 2024, Diffusion Engineers reported a 10% increase in total revenue from operations, reaching ₹285 crore, compared to the previous year. This growth was driven primarily by higher revenues from its welding equipment, wear plates, and trading activities. Additionally, the company achieved a 39% year-on-year increase in net profit, reaching ₹30.8 crore during the same period, reflecting its ability to improve profitability alongside revenue growth.

IPO Book-Running and Listing

Unistone Capital is the sole book-running lead manager for the Diffusion Engineers IPO, while Bigshare Services Pvt Ltd is acting as the registrar. The company’s shares are slated for listing on both the BSE and NSE, providing liquidity and access to a broader investor base.