Diffusion Engineers IPO opens for subscription: Should you subcribe?

The initial public offering (IPO) of Diffusion Engineers opened for subscription on Thursday, with the public issue aiming to raise Rs 158 crore.
The Diffusion Engineers IPO is entirely a fresh issue of 94 lakh shares and will close on September 30, 2024.
The price band for the IPO has been set between Rs 159 and Rs 168 per share. Investors can apply for a minimum lot of 88 shares, requiring a retail investment of Rs 14,784.
For small non-institutional investors (sNII), the minimum lot size is 14 lots (1,232 shares), amounting to Rs 206,976. For large non-institutional investors (bNII), the minimum is 68 lots (5,984 shares), which comes to Rs 1,005,312.
Unistone Capital Pvt Ltd is the book-running lead manager for the issue, and Bigshare Services Pvt Ltd is the registrar.
An IPO note from Master Capital Service Ltd said that India’s heavy engineering capital goods industry is estimated to be Rs 3,100-3,200 billion as of fiscal 2024 and is projected to clock a CAGR of 7.5-8.5% over fiscals 2023–27 to reach Rs 3,800-3,900 billion.
Diffusion Engineers plans to take advantage of this growth-fuelled environment by focusing on a strategic expansion into nickel, cobalt, and iron-based powder manufacturing for an enhanced welding consumables portfolio.
“The company also intends to expand its geographical reach and increase its exports through its subsidiaries and joint ventures. Further, the company is focusing on diversifying its Anti Wear Solutions and Heavy Engineering Equipment business into new industries and providing customised solutions for the same across various industries. Investors looking to invest can invest in the IPO for the medium to long term,” said Master Capital Service Ltd.
The latest Grey Market Premium (GMP) for the Diffusion Engineers IPO stands at Rs 80, as of 11:28 AM on September 26, 2024.
With a price band of Rs 168, the estimated listing price is projected to be Rs 248, which is the cap price plus the current GMP. This translates to an expected gain of 47.62% per share.
The allotment of shares is expected to be finalised on Tuesday, October 1, 2024, with the shares tentatively scheduled to list on BSE and NSE on Friday, October 4, 2024.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)