Diffusion Engineers shares list at 12% premium: Hold or book profit?

Diffusion Engineers listing: The shares listed at Rs 188 on the Bombay Stock Exchange (BSE), marking an 11.90% rise over the issue price of Rs 168.

In Short

• Diffusion Engineers shares debut at 12% premium on BSE
• Investors advised to hold shares with a stop-loss at Rs 168
• IPO was subscribed 114.50 times during the bidding period

Shares of Diffusion Engineers Limited made a decent debut on Dalal Street amid a market slump due to the growing Middle East conflicts on Friday, opening at a 12% premium over their initial public offering (IPO) price. While the listing was positive, it fell short of expectations. Before the market debut, Diffusion Engineers shares were trading at a premium of 35.52% in the grey market, leading investors to anticipate a stronger opening.

The shares listed at Rs 188 on the Bombay Stock Exchange (BSE), marking an 11.90% rise over the issue price of Rs 168. On the National Stock Exchange (NSE), the shares opened at Rs 193, a 15.17% premium.

Should you hold or sell?

The key question for investors now is whether to hold onto their shares or book profits. According to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, the company’s stock market debut, while not as high as some expected, is still a positive sign, with the shares listing at Rs 193 on the NSE.

Nyati believes Diffusion Engineers is positioned for future growth, citing the company's focus on forward integration and diversification. "The organisation has shown steady financial growth and expanding profits, which bodes well for long-term investors. The P/E valuation of the IPO is reasonable," she said.

For those who participated in the IPO, Nyati suggests holding onto their shares but keeping a close watch on both the company’s performance and overall market conditions. She advises maintaining a stop-loss at the issue price of Rs 168 to protect against any downside.

Strong IPO response

The Diffusion Engineers IPO saw significant interest from investors, with an overall subscription of 114.50 times.

The retail category was subscribed 85.61 times, the Qualified Institutional Buyers (QIB) segment saw demand at 95.74 times, and the Non-Institutional Investors (NII) category was oversubscribed by 207.60 times.

This strong response reflected investor confidence in the Maharashtra-based company, which aimed to raise Rs 158 crore through its public issue.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)