Diffusion Engineers IPO Listing Today: Strong Grey Market Buzz, Shares Poised for Gains on BSE & NSE

Diffusion Engineers is making its stock market debut today, October 4, after strong demand for its initial public offering (IPO). The company’s shares will be listed on both BSE and NSE, with trading starting at 10:00 AM.

IPO Overview

The Diffusion Engineers IPO was open for subscription from September 26 to 30, with the allotment of shares finalized on October 1. The stock is being listed in the “T” Group of Securities, and trading will be conducted in the Trade-for-Trade segment for the first 10 trading days.

Grey Market Premium (GMP)

Shares of Diffusion Engineers are performing well in the grey market, showing a premium of ₹58 per share. This suggests the shares are trading at a higher price than the issue price in unofficial markets. As per market experts, the expected listing price is around ₹226 per share, which would be a 34.52% premium over the issue price of ₹168 per share.

Strong Market Debut Expected

The company has drawn considerable attention due to its strong financial performance and the IPO’s overwhelming subscription rate. The public offering was subscribed over 114 times, with retail investors subscribing 85.61 times, institutional buyers subscribing 95.74 times, and non-institutional investors subscribing 207.60 times.

Akriti Mehrotra, a Research Analyst at StoxBox, noted that Diffusion Engineers is one of the top companies in its sector in terms of revenue and profit growth. The company’s profit after tax (PAT) grew significantly from ₹170.5 million in FY22 to ₹308 million in FY24, demonstrating strong financial performance.

Expert Views on Listing Price

Market expert Arun Kejriwal, Founder of Kejriwal Research and Investment Services, expects the listing price to be between ₹200 and ₹210, which would represent a 25% increase over the issue price of ₹168. However, he also warned that the current bearish trend in the broader stock market could impact the listing gains.

Key Details of Diffusion Engineers IPO

• Subscription period: September 26–30, 2024
• Price band: ₹159 to ₹168 per share
• Amount raised: ₹158 crore
• Shares offered: 94.05 lakh shares (entirely fresh issue)
• Listing date: October 4, 2024
• Subscription rate: 114.49 times overall, including 85.61 times in retail, 95.74 times by Qualified Institutional Buyers, and 207.60 times by Non-Institutional Investors.

Given the high demand for the IPO and the company’s strong financials, investors are optimistic about the stock’s performance on its listing day and beyond. Experts suggest that investors who were allocated shares might consider holding onto them for medium to long-term gains.