Diffusion Engineers shares make a decent stock market debut; lists at 15% premium

Shares of Diffusion Engineers made a decent Dalal Street on Friday amid the rising volatility in the stock markets. The stock was listed at Rs 193.50 on NSE, a premium of 1518 per cent over the issue price of Rs 168 apiece. Similarly, the stock kicked off its maiden trading session with a premium of 11.90 per cent over the given issue price at Rs 188 on BSE.

The listing has been on the below the expectations amid the volatile market sentiments. Last heard, shares of Diffusion Engineers were commanding a grey market premium of Rs 55-58 per share in the unofficial market, suggesting a listing pop of about 34-35 per cent for the investors.

The IPO of Diffusion Engineers was sold in the fixed price band of Rs 159-168 per share with a lot size of 88 shares. The issue was open for bidding between September 26 and September 30. The company raised a total of Rs 158 crore from its primary stake sale, which was entirely a fresh share sale of 94.05 lakh equity shares.

The issue was overall subscribed a solid 114.49 times. The portion for non-institutional investors (NIIs) was booked 207.60 times, while the quota for qualified institutional bidders (QIBs) was subscribed 95.74 times. The allocations for retail bidders and employees were subscribed 95.03 times and 85.61, respectively.

Incorporated in 1982, Nagpur-based Diffusion Engineers is active in the manufacture of welding consumables, wear plates and parts, and heavy machinery for core industries. The company offers specialized repair and reconditioning services for heavy machinery and equipment.

Brokerage firms mostly had a positive view on the issue, suggesting to subscribe to it. Unistone Capital was the sole book running lead manager of the Diffusion Engineers IPO, while Bigshare Services served as the registrar for the issue.