United Heat Transfer Limited, a leading company in the heat exchanger equipment sector, stands out for its commitment to excellence and innovation. With a team of seasoned professionals, the company ensures that every product adheres to the highest standards of quality and reliability. As the global market for industrial heat transfer equipment grows, United Heat Transfer is well-positioned to expand through its focus on innovation, quality, and customer satisfaction.

IPO Overview

The United Heat Transfer IPO is a Book Built Issue valued at ₹29.99 crores, consisting entirely of a fresh issue of 50.84 lakh shares. The IPO opens on October 22, 2024, and closes on October 24, 2024. Investors can expect the allotment to be finalized by October 25, 2024, and the shares to be listed on the NSE SME around October 29, 2024.

The price band for the IPO is ₹56 to ₹59 per share, with a lot size of 2,000 shares. For retail investors, the minimum investment required is ₹1,18,000, while HNIs (High-Net-Worth Individuals) must invest a minimum of 2 lots (4,000 shares), which amounts to ₹2,36,000. At the higher end of the price band, the market capitalization of United Heat Transfer Limited will reach ₹112.12 crores.

Lead Manager and Market Maker

SWASTIKA INVESTMART LIMITED is the book-running lead manager for the IPO, and LINK INTIME INDIA PRIVATE LIMITED is the registrar. Additionally, Swastika Investmart Limited will serve as the Market Maker for this IPO.

United Heat Transfer Limited IPO GMP Today

The Grey Market Premium (GMP) for the United Heat Transfer Limited IPO is estimated at ₹19, indicating potential listing gains of around 32%. Although the GMP provides some insight into market sentiment, it is crucial to note that no formal trading is conducted based on GMP. As such, the final price discovery will only happen once the shares are listed on the stock exchange.

Live Subscription Status

The United Heat Transfer IPO opens for subscription on October 22, 2024. Investors can track real-time updates on the subscription status on the NSE website or via their brokerage platforms.

How to Check Allotment Status

The United Heat Transfer IPO allotment will be announced on October 25, 2024. Here's a step-by-step guide to check your allotment status:

Visit the IPO allotment status page on the registrar's website.

Select United Heat Transfer Limited IPO from the dropdown menu.

Input your application number, PAN, or DP Client ID.

Submit your details to view the allotment status.

By following these steps, investors can easily determine their allotment status and take further action as required.

Objectives of United Heat Transfer Limited IPO

The proceeds from the United Heat Transfer IPO will be allocated for the following purposes:

₹573.38 lakhs will be used for repayment of debt.

₹1,400.00 lakhs will be utilized to meet incremental working capital requirements.

Remaining funds will be used for general corporate purposes.

Financial Performance

United Heat Transfer has shown solid financial growth over the past few years. The revenues from operations for the four months ending July 31, 2024, and the fiscal years 2024, 2023, and 2022 were ₹2,120.01 lakhs, ₹6,409.55 lakhs, ₹7,040.15 lakhs, and ₹4,796.11 lakhs, respectively. The company's EBITDA for these periods was ₹527.51 lakhs, ₹999.07 lakhs, ₹777.37 lakhs, and ₹615.21 lakhs.

Additionally, the Profit After Tax (PAT) for the same periods were ₹242.53 lakhs, ₹623.85 lakhs, ₹211.54 lakhs, and ₹152.67 lakhs, respectively. These figures indicate that United Heat Transfer has consistently improved its profitability over time.

The company is issuing shares at a pre-issue EPS of ₹4.89 and a post-issue EPS of ₹3.28. The pre-issue P/E ratio is 12.06x, while the post-issue P/E ratio is 17.98x. Comparatively, the industry P/E ratio is 30.38x. Furthermore, the company’s Return on Capital Employed (ROCE) for FY24 stands at 31.77%, and the Return on Equity (RoE) is 30.62%, suggesting that the IPO is fairly priced.

Promoters and Leadership

United Heat Transfer Limited is led by experienced promoters, including:

Mr. Yogesh Vishwanath Patil, with over 29 years of experience in production, finance, and commercial aspects of the heat exchanger industry.

Mr. Vivek Vishwanath Patil, also with 29 years of experience, specializing in design, marketing, and administration.

Ms. Durva Yogesh Patil, who has 8 years of entrepreneurial experience as the proprietor of Bello.

Mr. Shatanik Vivek Patil, with 2.5 years of experience, is currently a director at Uniheat Research and Solutions Private Limited, a group company.

These leaders bring a wealth of expertise and have played a pivotal role in driving United Heat Transfer’s growth and innovation.

Market Insights and Recommendations

With a GMP of ₹19, investors can expect listing gains of around 32%. However, it is essential to consider both the potential risks and rewards when evaluating this IPO. The company has demonstrated strong financial growth, with increasing revenues and profits, supported by experienced leadership and a growing market for heat exchanger equipment.

Given these factors, we recommend that risk-tolerant investors consider applying to the United Heat Transfer Limited IPO for listing gains or long-term investment purposes.

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