Thu Sep 26 21:54:38 UTC 2024: ## Diffusion Engineers IPO Over-Subscribed on Day One: Strong Demand for Welding Consumables Manufacturer

**Mumbai, India (September 26, 2024)** – Diffusion Engineers Ltd., a leading manufacturer of welding consumables, wear plates, and heavy machinery, saw a strong response on the first day of its initial public offering (IPO). The ₹158 crore IPO, priced between ₹159 and ₹168 per share, received bids for 4,81,15,320 shares, resulting in a 7.29 times subscription.

The retail individual investors (RIIs) category was particularly enthusiastic, subscribing 11.49 times the allotted portion. Non-institutional investors followed closely with a 6.83 times subscription, while qualified institutional buyers (QIBs) saw a 3% subscription.

Analysts attribute the positive response to Diffusion Engineers’ strong position in a growing market. Master Capital Service Ltd. notes that India’s heavy engineering capital goods industry is expected to reach ₹3,800-3,900 billion by fiscal 2027, driven by consistent growth. Diffusion Engineers is well-positioned to capitalize on this trend with its strategic expansion into nickel, cobalt, and iron-based powder manufacturing, enhancing its welding consumables portfolio.

SIMFS, another research firm, highlights the burgeoning welding consumables and wear plates markets, projected to reach ₹64-66 billion and ₹28 billion respectively by FY27. The company’s backward integration strategy and “Make in India” alignment are also key factors driving its growth.

The grey market is buzzing with optimism, with unlisted shares trading at a ₹90 premium over the issue price, indicating a potential 53.57% listing gain.

The IPO will remain open for subscription until September 30, 2024, with allotment expected on October 1, 2024. The shares are slated to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 4, 2024.

**Key highlights of the Diffusion Engineers IPO:**

* IPO size: ₹158 crore
* Price band: ₹159 to ₹168 per share
* Subscription period: September 26 to September 30, 2024
* Allotment date: October 1, 2024
* Listing date: October 4, 2024

Investors interested in long-term growth prospects in the heavy engineering sector are likely to find Diffusion Engineers’ IPO an attractive proposition.

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