Diffusion Engineers IPO Anchor Allocation

Diffusion Engineers IPO saw a positive anchor allocation response, with 29.84% of the total IPO size subscribed by anchor investors. Out of 9,405,000 shares on offer, anchors picked up 2,806,500 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 25th September 2024, just ahead of the IPO opening on 26th September 2024.

The book-built issue of ₹158.00 crores comprises a fresh issue of 9,405,000 shares. The price band is set at ₹159 to ₹168 per share, with a face value of ₹10 per share. This includes a share premium of ₹158 per share at the upper end of the price band.

The anchor allocation process, which took place on 25th September 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹168 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the Diffusion Engineers IPO looks as follows:

Notably, the 2,806,500 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 50% before the anchor allocation to 20.19% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Diffusion Engineers Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 31st October 2024 
• Lock-in Period (Remaining Shares): 30 December 2024

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Diffusion Engineers IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 25th September 2024, Diffusion Engineers IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 2,806,500 shares were allotted to 5 anchor investors. The allocation was done at the upper IPO price band of ₹168 per share, resulting in an overall anchor allocation of ₹47.15 crore. The anchors have already absorbed 29.84% of the total issue size of ₹158.00 crore, indicating strong institutional demand.

Out of the total allocation of 2,806,500 Equity Shares, 1,080,328 Equity Shares were allocated to domestic mutual funds, which represents 38.49% of the anchor allocation.

Key Diffusion Engineers IPO Details:

• IPO Size: ₹158.00 crores
• Shares Allocated to Anchors: 2,806,500
• Anchor Subscription Percentage: 29.84%
• Listing Date: 4th October 2024
• IPO Opening Date: 26th September 2024

About Diffusion Engineers IPO and How to apply for Diffusion Engineers IPO

Founded in 1982, Diffusion Engineers Limited is a leading manufacturer in the field of welding consumables, wear plates and parts, and heavy machinery designed for core industries. The company has built a reputation for providing specialised repair and reconditioning services for heavy machinery and equipment, ensuring optimal functionality and longevity. In addition to manufacturing, the company trades in wear protection powders and various welding and cutting machines.

One of the company’s flagship innovations is its Super Conditioning process, a surface treatment technology for machine components that improves wear resistance, reduces internal stresses, and enhances reparability. This process extends the machinery's service life and significantly reduces production costs for industrial clients.
Diffusion Engineers Limited operates four manufacturing units, three of which are located in the Nagpur Industrial Area, Hingna, Nagpur, Maharashtra, and one at Khapri (Uma), Nagpur, Maharashtra.

The operations are categorised as follows: Unit I produces welding electrodes for specialised purposes; Unit II focuses on flux-cored wires, wear plates, and fabrication of wear parts; Unit III specialises in coatings to prevent abrasion and corrosion; and Unit IV, which started producing flux-cored wires in the financial year 2024, manufactures wear plates and provides heavy engineering solutions.

The company’s strong engineering team, consisting of over 130 qualified professionals as of February 29, 2024, supports its diverse product offerings and innovative solutions.

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