Diffusion Engineers IPO shares to list today; should you expect listing gains amid stock market volatility?

Diffusion Engineers is set to make its Dalal Street debut on Friday amid the rising volatility on the Dalal Street. The company is likely to deliver a decent listing pop to the investors, if one goes by the current grey market premium (GMP) for the company.  However, its GMP has taken a hit lately, particularly post the allotment of shares.

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 GMP stood at Rs 90 when the bidding for the issue kicked-off for bidding, while its was near Rs 70 when the allotment for the issue was announced.

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 had a positive view on the issue and suggested subscribing for a long term. Unistone Capital was the sole book running lead manager of the Diffusion Engineers IPO, while Bigshare Services served as the registrar for the issue. Shares of the company shall be on both BSE and NSE.