United Heat Transfer Limited takes pride in its unwavering commitment to excellence and innovation in the field of heat exchanger equipment. With a team of dedicated professionals at the helm, they ensure that each product meets the highest standards of quality and reliability. United Heat Transfer Limited is poised to grow multi-folds by prioritizing growth factors like innovation, quality, and customer satisfaction above all else.

As a significant player in the heat exchanger industry, United Heat Transfer is now gearing up for its initial public offering (IPO). The IPO, amounting to ₹29.99 Crores, consists entirely of a fresh issue of 50.84 lakh shares. The subscription period for the United Heat Transfer IPO opens on October 22, 2024, and closes on October 24, 2024. Allotment is expected to be finalized on or about Friday, October 25, 2024, with the shares tentatively set to list on the NSE SME on or about Tuesday, October 29, 2024.

Pricing and Market Capitalization

The share price band for the United Heat Transfer IPO is set at ₹56 to ₹59 per equity share. At the upper price of ₹59, the market capitalization of United Heat Transfer Limited will be approximately ₹112.12 Crores. The lot size for the IPO 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 two lots (4,000 shares), totaling ₹2,36,000.

IPO Management

SWASTIKA INVESTMART LIMITED is the book-running lead manager, while LINK INTIME INDIA PRIVATE LIMITED serves as the registrar for the issue. Additionally, Swastika Investmart Limited will act as the market maker for the United Heat Transfer IPO.

Grey Market Premium and Subscription Status

As of the morning of October 23, 2024, the Grey Market Premium (GMP) for the United Heat Transfer Limited IPO is expected to be ₹19 based on the company's financial performance. It is important to note that no real trading is conducted based on the GMP, and it is primarily an unregulated measure dependent on the demand and supply of shares in the market.

As of 10:25 AM on October 23, the United Heat Transfer IPO live subscription status indicates that the IPO is subscribed 3.02 times on its second day. This reflects positive investor interest and can be checked in real time on the NSE.

Anchor Investors and Allocation

United Heat Transfer Limited has successfully raised ₹8.46 Crores from anchor investors at a price of ₹59 per share. The company allocated 14,34,000 equity shares to these investors. It is crucial to understand that shares allotted to anchor investors are drawn from the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Date and How to Check Status

The allotment date for the United Heat Transfer IPO is set for October 25, 2024. Investors can check their allotment status online by following these steps:

Navigate to the IPO allotment status page.

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.

By following these steps, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of the IPO

The proceeds from the fresh issue of the United Heat Transfer IPO will be utilized for the following objectives:

₹573.38 Lakhs will be allocated for the repayment of debt.

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

General corporate purposes will also be a focus for the raised funds.

Financial Performance and IPO Review

The company boasts a strong commitment to excellence and is led by experienced promoters. MR. YOGESH VISHWANATH PATIL has over 29 years of experience in production, commercial, and finance in the heat exchanger industry. MR. VIVEK VISHWANATH PATIL has equal experience in design, marketing, and administration. MS. DURVA YOGESH PATIL has 8 years of entrepreneurial experience, while MR. SHATANIK VIVEK PATIL brings 2.5 years of experience from a related group company.

The company's revenues from operations for the four-month period ended 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 EBITDA for the same periods were ₹527.51 Lakhs, ₹999.07 Lakhs, ₹777.37 Lakhs, and ₹615.21 Lakhs. Furthermore, the profit after tax for the four-month period was ₹242.53 Lakhs, showcasing the company’s financial stability.

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 against an industry P/E ratio of 30.38x. The company's ROCE for FY24 is 31.77%, and RoE is 30.62%, indicating that the IPO is fairly priced.

The Grey Market Premium (GMP) suggests potential listing gains of 32%. Considering the company’s financial performance and IPO valuation, we recommend that risky investors apply to the United Heat Transfer Limited IPO for potential listing gains or long-term investment purposes.

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