United Heat Transfer Limited is a leading company in the field of heat exchanger equipment, emphasizing innovation and excellence in its products. The company prides itself on delivering high-quality, reliable products, ensuring customer satisfaction and continued growth. With a dedicated team of professionals, United Heat Transfer is committed to expanding its market presence by prioritizing quality and innovation.

The initial public offering (IPO) from United Heat Transfer is a book-built issue amounting to ₹29.99 crore, which consists solely of a fresh issue of 50.84 lakh shares. This is a significant move for the company, allowing it to raise capital for various growth initiatives. The subscription period for this IPO opens on October 22, 2024, and closes on October 24, 2024. Investors can expect the allotment to be finalized on October 25, 2024, with shares set to be listed on the NSE SME on or about October 29, 2024.

Price Band and Lot Size
The price band for the United Heat Transfer IPO has been set between ₹56 and ₹59 per equity share. At the upper end of the price band, the market capitalisation of United Heat Transfer Limited is estimated to be around ₹112.12 crore. The lot size for the IPO is 2,000 shares, meaning that retail investors need to invest a minimum of ₹1,18,000. For High-Net-Worth Individuals (HNIs), the minimum investment requirement is 2 lots (4,000 shares), totaling ₹2,36,000.

Lead Managers and Market Maker
SWASTIKA INVESTMART LIMITED serves as the book-running lead manager, while LINK INTIME INDIA PRIVATE LIMITED functions as the registrar for the issue. Importantly, Swastika Investmart Limited will act as the Market Maker for the United Heat Transfer IPO, which can help provide liquidity and facilitate trading post-listing.

United Heat Transfer Limited IPO Grey Market Premium (GMP)
Currently, the Grey Market Premium (GMP) for the United Heat Transfer IPO is reported at ₹19, indicating potential listing gains. However, it’s crucial to note that grey market activity does not provide a reliable price discovery mechanism, and potential investors should exercise caution. The GMP serves as an educational tool and should not be the sole basis for investment decisions.

Live Subscription Status and Allotment Process
The subscription for the United Heat Transfer IPO opens on October 22, 2024. Investors can track the live subscription status through official platforms to gauge the demand for the IPO. The allotment date is set for October 25, 2024. To check the allotment status online, follow these steps:

Go to the IPO allotment status page on the registrar's website.

Select United Heat Transfer Limited IPO from the dropdown list.

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

Submit the details to view your allotment status.

Objectives of the IPO
The proceeds from the fresh issue will be allocated towards the following objectives:

₹573.38 lakhs will be utilized for repayment of debt.

₹1,400.00 lakhs will be directed towards meeting incremental working capital requirements.

Remaining funds will be used for general corporate purposes.

Financial Performance and Management Team
United Heat Transfer has shown a robust financial performance over recent periods. For the four-month period ending July 31, 2024, the company recorded revenues from operations of ₹2,120.01 lakhs. The fiscal revenues for the years 2024, 2023, and 2022 were ₹6,409.55 lakhs, ₹7,040.15 lakhs, and ₹4,796.11 lakhs, respectively.

The company achieved an EBITDA of ₹527.51 lakhs during the same period, with annual figures of ₹999.07 lakhs for FY24, ₹777.37 lakhs for FY23, and ₹615.21 lakhs for FY22. Additionally, the Profit after Tax (PAT) for the four-month period was ₹242.53 lakhs, while for FY24, FY23, and FY22, it reported ₹623.85 lakhs, ₹211.54 lakhs, and ₹152.67 lakhs, respectively.

The management team at United Heat Transfer is composed of experienced professionals, including:

Mr. Yogesh Vishwanath Patil: Over 29 years of experience in production, commercial finance, and the heat exchanger industry.

Mr. Vivek Vishwanath Patil: More than 29 years of experience in design, marketing, and administration.

Ms. Durva Yogesh Patil: Holds 8 years of entrepreneurial experience, managing her own venture.

Mr. Shatanik Vivek Patil: Has 2.5 years of experience and currently serves as a Director at a group company.

Valuation Metrics
For the United Heat Transfer IPO, 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 stands at 12.06x, while the post-issue P/E ratio is 17.98x, compared to an industry P/E ratio of 30.38x. With a ROCE of 31.77% and RoE of 30.62% for FY24, these metrics indicate that the IPO is fairly priced.

Final Review and Recommendation
Given the financial performance, market position, and the company's growth strategy, United Heat Transfer Limited presents an appealing investment opportunity. The reported GMP of ₹19 suggests a potential listing gain of 32%. Considering the company's strong financial indicators and experienced management, we recommend that risky investors apply for the United Heat Transfer Limited IPO for both potential listing gains and long-term investment purposes.

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