United Heat Transfer IPO Booked 2.67 Times On Day 1; GMP At 23%

The initial public offering (IPO) of United Heat Transfer Ltd. opened for subscription on Oct. 22. The United Heat Transfer IPO is a book-built issue worth Rs 30 crore, consisting entirely of a fresh issue of 50.84 lakh shares. Retail investors may submit their bids with a minimum lot size of 2,000 shares, amounting to Rs 1,18,000. The IPO’s price band has been set between Rs 56 and Rs 59 apiece.

The subscription window for the United Heat Transfer IPO will close on Oct. 24.

Investors interested in the Danish Power IPO should check the following details before bidding for its shares.

The share allotment basis in the United Heat Transfer IPO will be finalised on Oct. 25. Refunds to unsuccessful applicants will be initiated on Oct. 28 along with the shares of successful applicants being credited to their Demat accounts on the same day.

Shares of United Heat Transfer Ltd. are set to list on the NSE SME platform, tentatively on Oct. 29.

The company's promoters – Yogesh Vishwanath Patil, Vivek Vishwanath Patil, Shatanik Vivek Patil and Durva Yogesh Patil – hold a 91.59% pre-issue stake in the company. This will be diluted to 67.09% after the public offer.

Swastika Investmart Ltd. will be serving as the book-running lead manager for the United Heat Transfer IPO, and Link Intime India Private Ltd is the issue’s registrar.

Swastika Investmart will also be acting as the market maker for the offering.

The United Heat Transfer IPO was subscribed 2.67 times on Tuesday.

• Qualified institutional buyers: 1.74 times.

• Non-institutional investors: 4.25 times.

• Retail investors: 2.67 times.

The grey market premium, or GMP, for the United Heat Transfer SME IPO, stood at Rs 14 per share as of 7:57 p.m. on Oct. 22. Given the upper price band of Rs 59, the expected listing price for the IPO is projected to be Rs 73 after factoring in the GMP. This suggests a potential gain of around 23.73% per share.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Established in January 1995, United Heat Transfers is a manufacturer of essential equipment, such as heat exchangers, pressure vessels and process flow skids. The company’s products find applications across sectors, such as petrol and diesel engines, maritime vessels, mining trucks and heavy machinery.

It operates two manufacturing facilities in Nashik, Maharashtra.

United Heat Transfer IPO: Use Of Proceeds

United Heat Transfer plans to use the proceeds from the IPO to settle debt, address incremental working capital requirements and other general corporate purposes.

Financials

For the fiscal year ending March 31, 2024, United Heat Transfer’s total income decreased by 9% compared to the previous year, falling from Rs 70.40 crore in March 2023 to Rs 64.09 crore.

However, the company’s profit after tax (PAT) increased significantly YoY, rising from Rs 2.11 crore in March 2023 to Rs 6.23 crore in March 2024.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.