Diffusion Engineers IPO Opens Today: Key Details and Should You Invest?

The initial public offering (IPO) for Diffusion Engineers Limited started today and will be open for bidding until September 30, 2024. The company has set the price for its shares between ₹159 and ₹168, aiming to raise ₹158 crore through this IPO. Currently, shares of Diffusion Engineers are trading at a premium of ₹78 in the grey market.

Key Details about Diffusion Engineers IPO:

1. GMP (Grey Market Premium): The shares are available at a premium of ₹78 today.
2. Price Range: The IPO price is set between ₹159 and ₹168 per share.
3. IPO Duration: The bidding period runs from today until September 30, 2024.
4. Amount to be Raised: The company seeks to raise ₹158 crore from this IPO.
5. Lot Size: Each lot for bidding consists of 88 shares.
6. Allotment Date: Shares are expected to be allocated on October 1, 2024.
7. Registrar: Bigshare Services Private Limited will handle the IPO registration.
8. Listing Date: The shares are expected to be listed on the BSE and NSE on October 4, 2024, as October 2 is a non-trading day.
9. Lead Manager: Unistone Capital is the lead manager for this IPO.

Should You Apply?

Analysts are generally positive about the Diffusion Engineers IPO. Akriti Mehrotra from StoxBox recommends subscribing to the issue, noting that the company focuses on welding consumables and heavy engineering machinery, which gives it a competitive edge. With strong growth in operating income and profitability from FY21 to FY24, and a relatively low price-to-earnings ratio of 11.7x, the investment appears promising for medium to long-term investors.

Anshul Jain from Lakshmi Shree Investment and Securities also advises investors to apply. He highlighted that the company saw a 10% year-on-year increase in revenue for FY24, reaching ₹285 crore, with a net profit increase of 39% to ₹30.8 crore. The diverse product portfolio includes welding consumables and heavy machinery services, adding to the company’s appeal.