Diffusion Engineers Share Price Close At 20% Premium Over IPO Price

Diffusion Engineers Ltd. share price closed at Rs 203.17 on the National Stock Exchange, a premium of 21% over the issue price of Rs 168 apiece. The stock closed at Rs 197.35 per share on the BSE, marking a premium of 17%.

The IPO was subscribed 114.49 times on its third and last day of bidding.

"We will be increasing our capacity in the heavy engineering division and will expand our electrode division with the funds received," Chief Financial Officer Abhishek Mehta told NDTV Profit. The expansion is set to begin soon, he said. The company's topline is expected to be in double digits in the next two to three years.

Speaking of their plans on international expansion, Prashant Garg, chief managing director of the company, said that they are already present or looking to expand into countries whose markets possess a prominent steel and cement sector presence, like Turkey, Vietnam, Saudi Arabia and the Philippines, due to the company's strong credentials and track record in the above sectors.

Incorporated in 1982, Diffusion Engineers manufactures welding consumables, wear plates and wear parts, and heavy engineering machinery for core industries.

The company provides a superconditioning process at its manufacturing facilities, a surface treatment solution for machine components that enhances wear resistance, eliminates stress, and improves repairability, ultimately extending their lifespan and reducing production costs.

The company presently operates from four manufacturing units, of which, units I, II, and III are located in Nagpur Industrial Area, Maharashtra, and Unit IV is located in Khapri (Uma) in Nagpur.

Proceeds from the issue will be used for funding capital expenditure requirements towards the expansion of existing manufacturing facility, setting up of a new manufacturing facility, funding working capital requirements among other general corporate purposes.