Diffusion Engineers Share Price Hits Upper Circuit Post Listing At 15% Premium Over IPO Price
Diffusion Engineers share price jumped 20.93% to Rs 203.17 apiece today. It remained locked in the upper circuit as of 12:26 p.m.
(Photo: Vivek Amare/NDTV Profit)
Diffusion Engineers Ltd. share price hit the 5% upper circuit on Friday. It opened on the National Stock Exchange at Rs 193.50 apiece, a premium of 15.18% over the issue price of Rs 168 apiece. The stock listed at Rs 188 per share on the BSE, marking a premium of 11.9%.
Diffusion Engineers share price jumped 20.93% to Rs 203.17 apiece today. It remained locked in the upper circuit as of 12:26 p.m.
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.
Indian customers have taught us to develop novel solutions as they demand the maximum out of an asset-- they want to squeeze the maximum out of their installed base to maximise asset utilisation. That has helped us develop new products which can be replicated in these geographies.Prashant Garg, CMD, Diffusion Engineers
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.
