United Heat Transfer Limited is coming up with an IPO with a fresh issue of 50,84,000 shares worth INR 30.00 crores. The company aims to repay the existing borrowings, meet the working capital requirement, repayment of borrowings, and general corporate purposes.
United Heat Transfer Limited IPO – Important Dates
| United Heat Transfer Limited IPO Date | October 22, 2024 to October 24, 2024 |
| United Heat Transfer Limited IPO Listing Date | October 29, 2024 |
| United Heat Transfer Limited IPO Price | INR 360-380 per share |
| United Heat Transfer Limited IPO Lot Size | 2000 Shares |
| United Heat Transfer Limited IPO Total Issue Size | INR 30.00 crores |
| United Heat Transfer Limited IPO Basis of Allotment | October 25, 2024 |
| United Heat Transfer Limited IPO Initiation of Refunds | October 28, 2024 |
| United Heat Transfer Limited IPO Credit of Shares to Demat | October 28, 2024 |
| United Heat Transfer Limited IPO Issue Type | Book Built Issue IPO |
| United Heat Transfer Limited IPO Listing At | NSE SME |
Read more about United Heat Transfer Limited IPO GMP
United Heat Transfer Limited IPO – Company Profile
The company is engaged in the manufacture of a range of shell and tube heat exchangers, air-cooled heat exchangers, pressure vessels, and process flow skids equipment which are used as critical equipment for petrol and diesel engines, railway engines, maritime engines, cruise and cargo ships, ferries, pleasure boats, marine diesel, mining trucks, megayachts, heavy engines, fishing boats, heavy trucks, freighters, trawlers, heavy haulages, power gen sets, supertankers, off-highway engines etc. since 1995.
The company operates two advanced manufacturing facilities situated in Nashik.
United Heat Transfer Ltd IPO Fundamental Analysis
United Heat transfer’s revenue has declined by 14% from FY2023 to FY2024, though profitability improved, with PAT doubling in FY2024. Expense management and operational efficiency remain strong. Equity, NAV, and RONW have increased, while liabilities have decreased, reflecting financial health and growth potential despite the revenue dip.
1. Revenue Performance:
The revenue declined by approximately 14% from FY2023 to FY2024, followed by a moderate start to FY2025 (₹2,119.40). This downward trend in revenue may signal challenges in maintaining growth.
2. Expense Management:
The company managed to reduce expenses from FY2023 to FY2024, indicating improved operational efficiency. In the first four months of FY2025, expenses are being controlled in line with the reduced revenue.
3. Profitability:
The company’s profitability improved significantly in FY2024, with PAT more than doubling compared to FY2023. However, the profitability in FY2025 seems stable so far, considering it is almost 50% of FY2024’s total profit in just four months.
The rise in EPS from FY2023 to FY2024 reflects stronger profitability, but FY2025’s non-annualized EPS suggests the company may maintain moderate earnings growth.
4. Equity and NAV Growth:
A steady increase in equity indicates that the company is retaining earnings and growing its equity base, which strengthens its financial position.
The rising NAV per share shows an increase in asset value per equity share, which is favorable for long-term investors.
5. Return on Net Worth (RONW):
The strong RONW in FY2024 reflects improved efficiency in utilizing equity to generate profits. The non-annualized figure for FY2025 is lower but reasonable for the first four months.
6. Financial Health:
The company’s asset base is expanding, indicating potential growth.
Liabilities have decreased from FY2023 to FY2025, improving the company’s debt position and reducing risk.
United Heat Transfer IPO Financial Analysis
| Particular | As of 31 March 2023 | As of 31 March 2024 | As of 31 July 2024(4 months) |
| Revenue (₹ in lakhs) | 6,995.09 | 6,019.31 | 2,119.40 |
| Equity (₹ in lakhs) | 1,413.86 | 2,037.71 | 2,865.24 |
| Expenses (₹ in lakhs) | 6,757.75 4 | 5,623.69 | 1,801.21 |
| Profit and Loss After Tax (₹ in lakhs) | 70.22 | 162.01 | 76.27 |
| Diluted EPS only (₹) | 1.66 | 4.89 | 1.74 (not annualised) |
| NAV per Equity Share (₹) | 11.09 | 15.98 | 20.58 |
| Return on Net Worth (RONW) (%) | 14.96 | 30.62 | 8.46 (not annualised) |
| Total Assets (in lakhs) | 6481.52 | 7046.66 | 7230.03 |
| Total Liabilities (in lakhs) | 5067.66 | 5008.95 | 4364.79 |
United Heat Transfer Limited IPO Peer Comparison
United Heat Transfer Limited has the lowest total income (₹623.85 lakhs) but a strong RoNW of 30.62%. Patel Airtemp India Limited shows moderate income and RoNW (₹1,474.38 lakhs, 10.33%), while The Anup Engineering Limited leads in both income and valuation with ₹10,240.16 lakhs and a NAV of ₹531.08.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS- Diluted (₹) | RoNW (%) | Net Asset Value(₹) |
| United Heat Transfer Limited | 623.85 | 10 | NA | 4.89 | 30.62 | 15.98 |
| Patel Airtemp India Limited | 1474.38 | 10 | 25.87 | 26.86 | 10.33 | 260.91 |
| The Anup Engineering Limited | 10,240.16 | 10 | 34.89 | 51.85 | 19.38 | 531.08 |
United Heat Transfer Ltd IPO Objective
The main objective of United Heat Transfer is to utilize INR 5.73 crores for loan repayment, INR 14 crores for working capital needs, and the remaining funds for general corporate purposes, including operating expenses and development costs for projects.
- To repay borrowings: The company plans to utilise INR 5.73 crores for the repayment of existing loans and borrowings.
- To meet working capital requirements: The business is working capital intensive as the major capital is invested in inventories and trade receivables. The Company will meet the requirement to the extent of INR 14 crores from the Net Proceeds of the Issue.
- General corporate purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
United Heat Transfer IPO Risks And Challenges
United Heat Transfer relies heavily on five states for 95% of its revenue, making it vulnerable to potential regional losses. It also depends on third-party transportation providers and a small number of key customers, posing risks to its operations, revenues, and profitability if disruptions occur.
- The company generates 95% of the revenue from 5 states. Loss of any of these large States may affect the business operations.
- The company is dependent on third-party transportation providers for procuring raw materials from the suppliers and delivery of finished products and materials to the clients. Any failure on the part of such service providers to meet their obligations could have a material adverse effect on the business.
- The company is dependent on a small number of customers for sales. The loss of any of these large customers may affect revenues and profitability.
United Heat Transfer Ltd IPO – Industry & Market Potential
The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables.
The global heat exchanger market size was valued at $16.7 billion in 2020 and is projected to reach $28.3 billion by 2030, growing at a CAGR of 5.5% from 2020 to 2030. A heat exchanger is a device that facilitates the process of heat exchange between two fluids that are at different temperatures.
United Heat Transfer Limited IPO – Type of Offer
United Heat Transfer Limited is coming up with an IPO comprising a fresh issue of 50,84,000 shares worth INR 30.00 crores. The company plans to utilize the proceeds to repay existing borrowings, meet working capital requirements, and for general corporate purposes.
United Heat Transfer IPO Offer Size
The issue size of United Heat Transfer Limited’s IPO includes a fresh issue of 50,84,000 shares worth INR 30.00 crores. The company plans to utilize the proceeds to repay existing borrowings, meet working capital requirements, and for general corporate purposes.
United Heat Transfer Limited IPO Allotment Structure
United Heat Transfer Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 2,56,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 2,56,000 shares, are reserved for market makers.
How to apply for the United Heat Transfer IPO?
To apply for the United Heat Transfer Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the United Heat Transfer Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the United Heat Transfer Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check United Heat Transfer IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the United Heat Transfer Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the United Heat Transfer Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the United Heat Transfer Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the United Heat Transfer Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official website of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
United Heat Transfer Ltd IPO Offer Registrar
The registrar for the United Heat Transfer Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C – 101, 1st Floor, 247 Park,
Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400083
Email: [email protected]
Website: www.linkintime.co.in
United Heat Transfer IPO – FAQs
1. What is the allotment date of the United Heat Transfer IPO?
The allotment date of the United Heat Transfer Limited IPO is October 25, 2024.
2. What is the price band of the United Heat Transfer IPO?
The price band of the issue is INR 56-59 per share.
3. What is the size of the United Heat Transfer IPO?
The issue size of United Heat Transfer Limited’s IPO includes a fresh issue of 50,84,000 shares worth INR 30.00 crores. The company plans to utilize the proceeds to repay existing borrowings, meet working capital requirements, and for general corporate purposes.
4. What is the listing date of the United Heat Transfer IPO?
The listing date of United Heat Transfer Limited’s IPO is October 29, 2024.
