The initial public offering of Diffusion Engineers continued to get strong support from investors, subscribing 27.19 times on the second day of bidding, September 27. Investors applied for 17.94 crore equity shares as against the IPO size of 65.98 lakh shares.
The welding consumables, wear plates and parts, and heavy engineering machinery manufacturer opened its public issue on September 26 to mobilise Rs 158 crore at the upper end of price band of Rs 159-168 per share.
Non-institutional and retail investors maintained their leading position, bidding 47.08 times and 36.64 times the portions set aside for them, respectively. However, the response from qualified institutional buyers remained weak, as they bought 0.28 times the allotted quota.
The company has reserved half of its issue size for qualified institutional buyers, 15 percent for non-institutional investors, and 35 percent for retail investors.
Also read: Swiggy IPO: 7 key takeaways from updated DRHP
It has also reserved 50,000 equity shares for its employees. Their portion was subscribed 36.64 times.
Diffusion Engineers provides specialised repairs and reconditioning services for heavy machinery and equipment. Additionally, it is also involved in trading of anti-wear powders, and welding and cutting machinery. Wear plates are essential part of the industries such as power plants, steel mills, quarrying, cement etc.
The company will utilise entire net fresh issue proceeds (excluding IPO expenses) for the expansion of existing manufacturing facility and setting up of a new manufacturing facility at Nagpur, Maharashtra. Further, the funds will be used for working capital requirements, and general corporate purposes.
Diffusion Engineers' IPO shares maintained more than 40 percent premium over the upper price band in the grey market, the market observers said. The grey market is an unofficial market for trading in IPO shares till the listing.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
