United Heat Transfer Limited is dedicated to excellence and innovation in the heat exchanger equipment sector. With a skilled team at the forefront, the company ensures that every product adheres to the highest standards of quality and reliability. United Heat Transfer is well-positioned for significant growth by emphasizing key factors such as innovation, quality, and customer satisfaction.

The company is launching a Book Built Issue aiming to raise ₹29.99 Crores, comprising a fresh issue of 50.84 lakh shares. The subscription period for this IPO opens on October 22, 2024, and closes on October 24, 2024. Allotment is expected to be finalized on October 25, 2024, with shares listing on the NSE SME by October 29, 2024.

The share price band for the IPO is set at ₹56 to ₹59 per equity share, leading to a market capitalization of approximately ₹112.12 Crores at the upper price band. The lot size is 2,000 shares, requiring a minimum investment of ₹1,18,000 for retail investors. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots, totaling ₹2,36,000.

Financial Performance Overview

As of 10:20 AM on October 24, 2024, the Grey Market Premium (GMP) for United Heat Transfer IPO is expected to be ₹19, indicating potential interest in the shares before listing. However, it's important to note that the GMP reflects unregulated trading dynamics and should be treated cautiously.

The live subscription status shows that the IPO is subscribed 12.25 times as of its final day. Additionally, United Heat Transfer has raised ₹8.46 Crores from anchor investors at a price of ₹59 per share, allocating 14,34,000 equity shares to these investors.

Financial Metrics and Investment Insights

United Heat Transfer reported revenues of ₹2,120.01 lakhs for the four-month period ending July 31, 2024, with revenues for the fiscal years 2024, 2023, and 2022 at ₹6,409.55 lakhs, ₹7,040.15 lakhs, and ₹4,796.11 lakhs, respectively. The Profit After Tax (PAT) for the same four-month period stands at ₹242.53 lakhs, compared to ₹623.85 lakhs, ₹211.54 lakhs, and ₹152.67 lakhs in previous years.

The company's Earnings Per Share (EPS) is ₹4.89 pre-issue and ₹3.28 post-issue. The Price-to-Earnings (P/E) ratio is 12.06x pre-issue and 17.98x post-issue, compared to the industry average of 30.38x. The Return on Capital Employed (ROCE) is notably high at 31.77%, and the Return on Equity (ROE) stands at 30.62%, indicating a strong valuation.

Investment Recommendation

Given the company's financial performance and valuation metrics, we recommend risk-tolerant investors to apply for the United Heat Transfer Limited IPO for potential listing gains and long-term investment.

Conclusion and Resources

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