Fri Sep 27 05:54:51 UTC 2024: ## Diffusion Engineers IPO Oversubscribed by 9.52 Times on Day 2

**Nagpur, India (September 29, 2023)** – The initial public offering (IPO) of Diffusion Engineers Ltd., a leading manufacturer of welding consumables and heavy engineering machinery, has received an overwhelming response, being subscribed 9.52 times as of 10:27 a.m. on the second day of bidding.

The offer, which is entirely a fresh issue with no offer for sale component, was first subscribed 7.16 times on Thursday, driven by strong demand from the employee reservation portion. Diffusion Engineers aims to raise Rs 158 crore through the IPO, with the price band set at Rs 159-168 per share. The listing is expected on October 4th.

The company intends to utilize the IPO proceeds to fund capital expenditure for expansion of its existing manufacturing facility, set up a new facility, and meet working capital requirements.

Diffusion Engineers, established in 1982, specializes in manufacturing welding consumables, wear plates, and heavy engineering machinery for core industries. Its unique superconditioning process enhances the lifespan and reduces production costs for machine components.

While the company’s reliance on the domestic market for sales could be a vulnerability, the strong subscription indicates investor confidence in the company’s growth potential.

**Key highlights:**

* **Subscription status:** 9.52 times on Day 2, 7.16 times on Day 1
* **Issue price:** Rs 159-168 per share
* **Total issue size:** Rs 158 crore
* **Grey market premium:** Rs 90, implying an estimated listing price of Rs 258 per share

**Disclaimer:** Investments in IPOs carry inherent market risks. Consult with financial advisors and thoroughly review the red herring prospectus before making any investment decisions.

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