Diffusion Engineers Limited IPO is open for subscription. The manufacturer of welding consumables aims to raise Rs 158 crore via the initial public offering (IPO). The mainboard issue of Diffusion Engineers Limited comprises 94 lakh shares. The IPO will remain open for subscriptions till September 30.
On Thursday, September 26, 2.52 times as many shares of the Diffusion Engineer IPO were booked in the opening hours of the first day of bidding. For the NSE SME issue, bids for over 1.66 crore shares were received out of the 65.98 lakh shares on offer.
Subscription across categories
Bids for 1.35 crore shares, or 4.15 times the retail portion of the IPO, were received out of the 32.74 lakh shares set aside for the category.
The 14.03 lakh shares reserved for non-institutional investors (NIIs) received applications for 26.77 lakh shares. NIIs quota was exceeded by 1.91 times.
No bids were submitted for 18.71 lakh shares allocated for the Qualified Institutional Buyers (QIBs), indicating their lack of interest in the IPO.
Minimum bid and reserved portion
For retail investors, a minimum application size of 88 shares, or an investment of at least Rs 14,784, is required. The minimum investment for small and medium-sized institutional investors (sNII) is 14 lots (1,232 shares), or Rs 2,06,976, while the minimum bid size for big institutional investors (bNII) is 68 lots (5,984 shares), or Rs 10,05,312.
Up to 50,000 shares, or Rs 8 a share less than the issue price, have been reserved by the company for its workforce.
Company financials
Diffusion Engineers Limited reported revenue of Rs 278 crore for the fiscal year that ended on March 31, 2024, as opposed to Rs 254 crore on the same date in 2023. Additionally, the business declared a Rs 30.8 crore net profit for FY24 as opposed to Rs 22.15 crore for FY23.
Diffusion Engineers' operating revenue increased by 10.8 per cent CAGR between FY22 and FY24, while its net profit increased by 21.9 per cent CAGR during the same period. Furthermore, the company may benefit from the estimated CAGR of nearly 9 per cent for the welding consumables market in India between FY24 and FY27.
Book running lead manager
The bookrunning lead manager for the Diffusion Engineers IPO is Unistone Capital Private Limited, and the registrar is Bigshare Services Private Limited.
