United Heat Transfer shares make muted debut, list at ₹60.95 on NSE SME, up 3.3% from IPO price
Shares of United Heat Transfer IPO made a muted debut on the bourses on Tuesday, October 29, listing at ₹60.95 on NSE SME, a premium of just 3.3 percent over the issue price of ₹59.
United Heat Transfer IPO listing: Shares of United Heat Transfer IPO made a muted debut on the bourses on Tuesday, October 29, listing at ₹60.95 on NSE SME, a premium of just 3.3 per cent over the issue price of ₹59.
The SME IPO, valued at ₹30 crore, was open for subscription from October 22 to October 24. The public offer was priced in the range of ₹56-59 per share.
Following the three days of bidding, United Heat Transfer IPO closed with robust demand, garnering 83.70 times bids. The IPO received bids for 28.40 crore shares against 33.94 lakh shares on offer. The retail investor segment saw a subscription of 98.93 times, while the non-institutional investors (NII) category was booked 124.72 times. The qualified institutional buyers (QIB) quota was subscribed 26.56 times.
About the IPO
United Heat Transfer IPO was entirely a fresh issue of 50.84 lakh shares with no offer-for-sale (OFS) component. United Heat Transfer raised ₹8.64 crore from anchor investors on October 21, 2024. Retail investors could apply with a minimum lot size of 2,000 shares, requiring a minimum investment of ₹1.18 lakh.
The proceeds from the fresh issue are earmarked for multiple strategic purposes. A portion will go toward repaying existing debt, aimed at strengthening the company's financial position. Another part is allocated to meet incremental working capital requirements, which will support the company’s growth and operational needs. Additionally, funds are reserved for general corporate purposes, enabling the company to address various business expenses and drive future expansion.
Swastika Investmart Ltd was the book-running lead manager of the United Heat Transfer IPO, while Link Intime India Private Ltd was the registrar for the issue. The market maker for United Heat Transfer IPO was Swastika Investmart.
"The company is engaged in the business of various types of industrial/automotive heat exchangers manufacturing and marketing. While it marked inconsistency in its top lines for the reported periods, quantum jump in bottom lines from FY24 onwards raises eyebrows and remains concern. Based on FY25 annualized super earnings, the issue appears fully priced. It is operating in a highly competitive and fragmented segment. Well-informed investors may park moderate funds for the long term," Dilip Davda of Chittorgarh.com said.
About the Company
Founded in January 1995, United Heat Transfers Limited specialises in the production of critical equipment, including heat exchangers, pressure vessels, and process flow skids. These products serve a broad range of industries, finding applications in petrol and diesel engines, maritime vessels, mining trucks, and heavy machinery.
The company runs two manufacturing facilities in Nashik, which are outfitted with modern infrastructure and advanced machinery to boost productivity and operational efficiency. Financially, United Heat Transfers Limited reported a revenue decline of 9 per cent, while its profit after tax (PAT) surged by 195 per cent for the fiscal year ending March 31, 2024, compared to the previous year.
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