Diffusion Engineers listing highlights: Shares list at ₹193.5, up 15.1% premium on the NSE

• On Friday, shares of Diffusion Engineers were listed at a premium of over 15% against the issue price of ₹168. Soon after listing, the stock was locked in at 5% upper circuit.
• The company's market valuation stood at Rs 738.61 crore.
• Diffusion Engineers manufactures welding consumables, wear plates and wear parts, and heavy engineering machinery for core industries.

As the minimum bid quantity to apply for the Diffusion Engineers IPO was 88 shares, successful bidders who were allotted shares in the primary issue would have been sitting on listing gains of ₹2,244 (₹25.5 x 88) per lot as soon as trading began in the stock.

Furthermore, the Diffusion Engineers stock hits 5% of the upper circuit as soon as it is listed on the bourse. Hence, investors who are still holding the stock would have made ₹3,094 per lot.

• Traded volume (Lakhs): 25.99
• Traded value: ₹51.40 crore
• Total market capitalisation: ₹760.39 crore
• Current price: ₹203.17 (+5.0%)
• Open: ₹193.5
• Issue price: ₹168
• High: ₹203.17
• Low: ₹193.05

Diffusion Engineers stock hits a 5% upper circuit after making a decent debut on the NSE and BSE. As of 10:20 am, shares traded at ₹203.17 per share, up 5% compared to the opening price of ₹193.50 per share on the NSE.

Meanwhile, on the BSE, the stock trades at ₹197.35 apiece, up 4.97% compared to the opening price of ₹188 per share.

Stock listed at ₹193.5 per share, up 15.1% over the issue price on NSE on October 4. Meanwhile, on the BSE, shares listed at ₹188 per share, up 11.9% compared to the upper end of the IPO price band of ₹168 per share.

Diffusion Engineers made a decent debut on the exchanges. Stock listed at ₹193.5 per share, up 15.1% over the issue price on NSE. Meanwhile, on the BSE, shares listed at ₹188 per share, up 11.9% compared to the upper end of the IPO price band of ₹168 per share.

• The company has over four decades of experience in the industry and has grown from a single-product to a multi-product manufacturing company.
• It has demonstrated consistent growth in revenues and profitability. Revenue rose by over 10% CAGR between FY22 and FY24, while net profit grew at a 21.9% CAGR.
• In a strategic move to diversify and enhance the product portfolio of welding consumables, the company intends to manufacture nickel, cobalt, and iron-based powders to cater to the growing demand from various industries.

The money raised from the public issue will be used by the company to expand its existing manufacturing facility, set up a new manufacturing facility at Nagpur, meet working capital requirements, and fund general corporate purposes.

Shares of the company were expected to make a decent debut on the bourses; however, a sharp fall in the global equity markets, including India, given the rising Middle East conflict, may impact the listing dat gains.

Investors can check the Manba Finance IPO share allotment status through the websites of the issue registrar, Bigshare Services, and the NSE.

Diffusion Engineers IPO was booked over 207.6 times in the Non-Institutional Investors (NIIs) category, with demand for 29.13 crore shares compared to 14.03 lakh shares reserved for the category. The retail portion of the IPO was booked 85.61 times, with applications for 28 crore shares compared to the allocation of 32.74 lakh shares.

Diffusion Engineers IPO Listing Live: About the company

Incorporated in 1982, Diffusion Engineers manufactures welding consumables like special-purpose electrodes, flux-cored wires, wear plates/parts, and heavy engineering machinery for various industries. The company also offers specialised welding services to its clients in the cement, power, and steel industries.

The company has four manufacturing units in Nagpur, Maharashtra, each producing a different set of products. Manufacturing units are strategically located in the central part of India, offering easy access to industries across the country and streamlined logistics for procurement and timely delivery to clients.

Between FY22 and FY24, Diffusion Engineers saw a 10.8% CAGR growth in its revenue from operations, while its net profit grew at a CAGR of 21.9%. Moreover, India’s welding consumables market is estimated to grow at a CAGR of nearly 9% between FY24 and FY27.