United Heat Transfer IPO

United Heat Transfer SME IPO: Comprehensive Overview

United Heat Transfer Limited recently conducted a successful SME IPO, attracting significant interest from retail and institutional investors. Here’s a detailed analysis of the IPO, the company, and its performance.

About United Heat Transfer Limited

Founded in 1995, United Heat Transfer Limited is a prominent manufacturer of industrial and automotive heat exchangers, pressure vessels, and process flow skids. These components serve industries such as maritime, automotive, heavy machinery, and mining.

Key Highlights of the Company:

State-of-the-art Manufacturing Units:
- Located in Nashik, Maharashtra, the company operates two highly advanced facilities.
- Equipped with modern technology to ensure high-quality and efficient production.
Diverse Product Applications:
- Key components for petrol/diesel engines, maritime vessels, and heavy machinery.
Global Presence:
- Exporting to multiple continents, mitigating reliance on any single market.
Financial Strengths:
- Profit After Tax (PAT) grew by 195% between FY2023 and FY2024.
- Strong focus on reducing debt and improving operational efficiency.
Workforce:
- Employs 105 full-time employees and 127 contractual workers.

United Heat Transfer SME IPO Details

Particulars	Details
IPO Date	October 22, 2024 – October 24, 2024
Listing Date	October 29, 2024
Price Band	₹56 – ₹59 per share
Lot Size	2,000 shares
Total Issue Size	₹30 crores (5,084,000 shares)
Market Maker & BRLM	Swastika Investmart
Listing Exchange	NSE SME

IPO Reservation Details

The IPO shares were allocated across various categories:

Category	Shares Offered	% of Total Issue
Anchor Investors	1,434,000	28.21%
QIB (Institutional)	974,000	19.16%
NII (HNI)	728,000	14.32%
Retail Investors	1,692,000	33.28%
Market Maker	256,000	5.04%
Total	5,084,000	100%

IPO Subscription Details

United Heat Transfer IPO received overwhelming interest, achieving an overall subscription of 83.7 times. Here’s the category-wise breakdown:

Category	Subscription (Times)
Qualified Institutional Buyers (QIB)	26.56
Non-Institutional Investors (NII)	124.72
Retail Investors	98.93

Objects of the IPO

The funds raised from this IPO are to be used for:

Repayment of Debt: Strengthening the company’s balance sheet.
Incremental Working Capital Requirements: To support growth in operations.
General Corporate Purposes: For day-to-day operational needs.

Company Financials

Summary of Financial Performance (₹ in Lakhs)

Particulars	31 Jul 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Revenue	2,120.01	6,409.55	7,040.15	4,796.11
Profit After Tax	242.53	623.85	211.54	152.67
Total Assets	7,230.03	7,046.67	6,481.52	6,262.36
Net Worth	2,865.24	2,037.71	1,413.86	1,202.32

Key Performance Metrics

Metric	Value
Return on Equity (ROE)	8.46%
Return on Capital Employed (ROCE)	10.79%
Debt-to-Equity Ratio	1.12
P/E Ratio (Post IPO)	15.41x
PAT Margin	11.44%

Anchor Investor Participation

Anchor investors contributed ₹8.46 crores to the IPO, with shares locked for varying durations:

Shares Locked	Lock-In Period
50%	November 23, 2024
Remaining 50%	January 22, 2025