Diffusion Engineers' shares listed at Rs 193.50 on the National Stock Exchange (NSE), representing a 15.18% premium over the IPO issue price of Rs 168.
2. **Listing Performance on BSE**
On the Bombay Stock Exchange (BSE), the shares listed at Rs 188, marking a premium of 11.9% over the IPO issue price.
3. **Grey Market Premium**
The grey market premium suggested that shares may list at approximately Rs 228, indicating a potential return of over 35% for investors allotted shares in the companys IPO.
4. **Subscription Status**
The IPO was subscribed 114.49 times on its last day of bidding, with non-institutional investors subscribing 207.60 times their reserved portion and qualified institutional buyers subscribing 95.74 times their allocated quota.
5. **Financial Performance**
Diffusion Engineers has shown impressive revenue growth with a compound annual growth rate (CAGR) of 16.6% from FY22 to FY24, and its profit after tax (PAT) surged from Rs 170.5 million in FY22 to Rs 308.0 million in FY24.
6. **Future Expansion Plans**
The company plans to increase its capacity in the heavy engineering division and expand its electrode division with the funds received from the IPO. It also aims to expand into countries with prominent steel and cement sectors like Turkey, Vietnam, Saudi Arabia, and the Philippines.
7. **Company Overview**
Incorporated in 1982, Diffusion Engineers manufactures welding consumables, wear plates, and wear parts, as well as heavy engineering machinery for core industries. The company provides specialized repair and reconditioning services for heavy machinery and equipment.
8. **Valuation and Outlook**
Brokerage firms have a positive view on the company, suggesting that it is fairly priced. The company is valued at a price-to-earnings ratio (P/E) of 20.4x with a market capitalization of Rs 6,290 million post-issue of equity shares.
9. **Brokerage Recommendations**
Brokerages recommend subscribing to the IPO, citing the company's strong financial performance and growth prospects. Shivani Nyati from Swastika Investmart advises holding onto shares while keeping an eye on market conditions and maintaining a stop-loss at the issue price.
