United Heat Transfer Limited is a leading manufacturer in the heat exchanger equipment industry. Known for its commitment to excellence and innovation, the company has established a strong reputation for delivering high-quality products. With a team of dedicated professionals, United Heat Transfer focuses on growth factors such as innovation, quality, and customer satisfaction. This strategic focus positions the company for multi-fold growth in the coming years.

United Heat Transfer Limited IPO Details

The United Heat Transfer Limited IPO is a Book Built Issue amounting to ₹29.99 Crores, consisting entirely of a Fresh Issue of 50.84 Lakh Shares. The subscription period for the IPO opens on October 22, 2024, and closes on October 24, 2024. The allotment of shares is expected to be finalized on or about October 25, 2024, with a tentative listing date set for October 29, 2024, on the NSE SME.

Pricing and Investment

The share price band for the IPO is set between ₹56 and ₹59 per equity share. At the upper end of the price band, the market capitalization of United Heat Transfer Limited will be ₹112.12 Crores. The lot size for the IPO is 2,000 shares, requiring a minimum investment of ₹1,18,000 for retail investors. High-Net-Worth Individuals (HNIs) need to invest in a minimum of 2 lots (4,000 shares), totaling ₹2,36,000.

Lead Managers and Market Makers

SWASTIKA INVESTMART LIMITED is the book-running lead manager, while LINK INTIME INDIA PRIVATE LIMITED acts as the registrar for the issue. Swastika Investmart will also serve as the Market Maker for the IPO.

Grey Market Premium

The Grey Market Premium (GMP) for the United Heat Transfer Limited IPO is currently at ₹19. It's important to note that the GMP is speculative and based on demand and supply in an unregulated market. Therefore, it should be considered for educational purposes only, as actual trading occurs on the stock exchange post-listing.

Live Subscription Status

As of October 24, 2024, at 6:19 PM, the United Heat Transfer IPO subscription status indicates an overwhelming interest, with the IPO subscribed 77.90 times on its final day.

Anchor Investors Report

United Heat Transfer has successfully raised ₹8.46 Crores from Anchor Investors at a price of ₹59 per share. A total of 14,34,000 equity shares have been allocated to these investors, contributing to the overall demand for the IPO.

IPO Allotment Date

The allotment date for the United Heat Transfer IPO is October 25, 2024. Investors can check their allotment status on the registrar’s website by selecting the United Heat Transfer Limited IPO and entering their application details.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for several purposes:

1. ₹573.38 Lakhs will be allocated for the repayment of debt.
2. ₹1,400.00 Lakhs will be directed to meet incremental working capital requirements.
3. Additional funds will be utilized for general corporate purposes.

Financial Performance

The company’s revenue from operations for the four-month period ending July 31, 2024, stood at ₹2,120.01 Lakhs, with an EBITDA of ₹527.51 Lakhs. The Profit after Tax for the same period was ₹242.53 Lakhs. Historical financial metrics show consistent growth, making the IPO attractive.

For the United Heat Transfer IPO, the company is offering 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 stands at 17.98x, compared to the industry P/E of 30.38x. The ROCE for FY24 is 31.77%, and the RoE is 30.62%, suggesting that the IPO is fairly priced.

Investment Recommendation

Given the company’s solid financial performance and growth trajectory, we recommend that Risky Investors Apply to the United Heat Transfer Limited IPO for potential listing gains and long-term investment opportunities.

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