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Home >> Blog >> United Heat Transfer Limited IPO: Review, Valuation, Date & GMP

United Heat Transfer Limited IPO: Review, Valuation, Date & GMP

  


United Heat Transfer IPO-Complete Overview

United Heat Transfer IPO under the SME IPO category is a book-built issue of Rs.30 crore by United Heat Transfer Pvt Ltd. The company was founded in January 1995 and produces process flow skids, pressure vessels, and heat exchangers, among other necessary equipment. Among other places, the company's goods find employment in heavy machinery, mining vehicles, marine vessels, and gasoline and diesel engines.

The company runs two manufacturing facilities in Nashik that are outfitted with cutting-edge gear and sophisticated infrastructure to increase output and efficiency.

This United Heat IPO will start on 22 October 2024, and its ‘initial public offering’ will end on 24 October 2024.

United Heat Transfer IPO Overview

The Rs.30 crore new SME IPO comprises a wholly fresh issue of 50.84 lac Shares. 

This upcoming IPO date is from October 22 to October 24, 2024. The United Heat Transfer limited share price is Rs.56 to Rs.59 for each Share. 

The expected IPO listing date is, 29 October 2024, and listing at NSE and SME.

 

United Heat Transfer IPO Allotment

The allotment is to be finalized on 25 October 2024.


If You want to apply for the IPO,  Click Here  to Open a Demat Account.

Company Financial

The company’s revenue fell by -9% and PAT increased by 195% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

Period

31 Jul 2024

31 Mar 2024

31 Mar 2023

Total Assets 

7,230.03

7,046.67

6,481.52

Total Revenue

2,120.01

6,409.55

7,040.15

PAT

242.53

623.85

211.54

Net Worth

2,865.24

2,037.71

1,413.86

Total Reserves & Surplus

1,473.24

762.71

988.86

Borrowings

3,202.13

3,692.18

3,295.18

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Net Cash Flow In Multiple Activities

31 Jul 2024

31 Mar 2024

31 Mar 2023

Net Cash Flow Operating Activities

176.24 

328.98 

764.47 

Net Cash Flow Investing Activities

563.47

-176.91 

-276.37

Net Cash Flow Financing Activities

-736.82 

-209.53 

-520.42

 

Product-wise Revenue Breakdown  

(Amount in lac)

Particulars

31 Jul 2024

31 Mar 2024

31 Mar 2023

Air Cooled Heat Exchanger / Air

Cooled Condenser /

CNG Air Coolers

25.96

259.13

1,432.91

Shell and Tube Heat Exchanger (Oil Cooler, Inter Cooler,

After Cooler)

1,105.40 

1,896.69

1,514.12 

Extended Surface Heat Exchangers

(Plate Fin Type)

239.74

869.84

987.40

Engine Jacket Water

Heat Exchanger with Expansion Tank (Header Tank Heat Exchangers)

257.68 

1,021.48

1,046.02

Charged Air Coolers (for diesel/petrol engines/Generators)

201.83 

656.38

694.91

Marine Heat Exchanger 

-

401.99

211.94

Moisture separators 

-

137.24 

54.33

Pressure Vessels 

248.88 

770.94 

944.87

Sales of Service

-

1.77

85.53

Other Sale 

39.91

3.84

23.05

Total 

2,119.40

6,019.31

6,995.09

 

Sale-wise Revenue Breakdown  

(Amount in lac)

Particulars

31 Jul 2024

31 Mar 2024

31 Mar 2023

Sale 

2,119.40 

6,019.31 

6,995.09 

Sale Return 

18.26

36.70

25.69

 

Geography-wise Revenue Breakdown  

(Amount in lac)

Particulars

31 Jul 2024

31 Mar 2024

31 Mar 2023

Export Revenue 

100.03 

532.04 

625.22

Indigence Revenue 

2,019.37

5,487.27

6,369.87 

Total Revenue 

2,119.40 

6,019.31

6,995.09 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

  • Paying back debt.

  • To fulfill increasing needs for working capital.

  • General corporate purposes.

 

Peers of United Heat Transfer Ltd.

Company Name

Face Value (Rs.)

EPS (Rs.)

P/E (x)

Patel Airtemp India Limited

10

26.86

25.87

The Anup Engineering Ltd.

10

52.2

34.89

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

 

Evaluation

The IPO price is Rs.56 to Rs.59 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.89 from the last year, the resulting P/E ratio is 12.06x.

Considering the weighted EPS of Rs.3.20 for the last three years, the P/E ratio is 18.43x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 30.38x.

Particulars

P/E Ratio (x)

Highest 

34.89

Lowest 

25.87

Average

30.38

 

In simple words, the P/E ratio of this IPO (12.06x), compared with the industry’s average P/E of 30.38x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths 

  • A management team with extensive experience.

  • Manufacturing facilities that are integrated.

  • Registration of vendors.

  • Extended customer relationships.

  • The unit's strategic location.

IPO’s Weaknesses

  • Manufacturing facilities are concentrated in one area (Nasik).

  • Reliance on particular sectors for product demand.

  • Price fluctuations for basic materials.

  • Fierce rivalry in the industry that produces industrial equipment.

  • Economic downturns that impact important client industries.

United Heat Transfer Limited IPO GMP

The IPO GMP today is Rs.7 as of 19 October 2024. With a price of Rs.59 per Share, the estimated IPO listing price is Rs.66 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from October 22 to October 24, 2024, with allotment on October 25, refund initiation on October 28, and listing on October 29, 2024.

Events 

Date

IPO Opening Date

October 22, 2024

IPO Closing Date

October 24, 2024

IPO Allotment Date 

October 25, 2024

Refund Initiation 

October 28, 2024

IPO Listing Date

October 29, 2024

 

 

 

United Heat Transfer IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 5,084,000 Shares (Rs.30 Cr).

IPO Opening & Closing date 

October 22, 2024 to October 24, 2024

Face Value 

Rs.10 per Share

Issue Price

Rs.56 to Rs.59 per Share.

Lot Size

2000 Shares

Issue Size

5,084,000 Shares (Rs.30 Cr)

Offer for Sale 

NA.

Fresh Issue 

5,084,000 Shares (Rs.30 Cr)

Listing at

NSE, SME

Issue Type 

Book Built Issue IPO

Registrar 

Link Intime India Private Ltd.


United Heat Transfer IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,18,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,36,000.

Minimum Lot Investment (Retail) 

1 Lot

Maximum Lot Investment (Retail) 

1 Lot

HNI (Min)

2 Lots

 

United Heat Transfer IPO Reservation (% of Net Issue)

Institutional’s Portion

50%

Retail’s Portion

35%

Non-Institutional’s Portion

15%

 

Promoters And Management of United Heat Transfer Ltd.

  • Mr. Yogesh Vishwanath Patil

  • Mr. Vivek Vishwanath Patil

  • Mr. Shatanik Vivek Patil

  • Ms. Durva Yogesh Patil

Pre-Issue Promoter Shareholding

91.59%

Post-Issue Promoter Shareholding

67.09%

 

IPO Lead Managers

  • Swastika Investmart Ltd.

Dividend Policy

The company has not paid dividends in the last three FYs.

 

Conclusion

United Heat Transfer's IPO offers an opportunity to participate in a well-established company with strong financials and growth potential. The IPO is priced attractively with a P/E ratio below the industry average, making it appealing to investors. However, factors like sector dependency and raw material price fluctuations pose risks. Overall, it looks like a reasonable investment, especially for those seeking long-term growth.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

Disclaimer: 

This is NOT any buy or sell recommendation. The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities/trading activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in investing/trading.  

Click Here to stay updated with the Upcoming IPOs.

 

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Frequently Asked Questions

+

In India, one must apply in person or online to invest in initial public offerings. Sending an offline application form to your IPO banker or broker is the first step in the application process. You must open a demat account or use ASBA to apply online.
 

+

If you have applied for the IPO but have not been allotted the Shares by the Registrar and now looking for “ what to do if the IPO refund is not received ”, then we have covered the blog which explains the steps to get your IPO refund. Click here to learn the steps.
 

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 October 29, 2024.



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