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)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown  

(Amount in lac)

Sale-wise Revenue Breakdown  

(Amount in lac)

 

Geography-wise Revenue Breakdown  

(Amount in lac)

 

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.

 

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.

 

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.

 

 

 

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).

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.

 

United Heat Transfer IPO Reservation (% of Net Issue)

 

Promoters And Management of United Heat Transfer Ltd.

• Mr. Yogesh Vishwanath Patil

• Mr. Vivek Vishwanath Patil

• Mr. Shatanik Vivek Patil

• Ms. Durva Yogesh Patil
  
  

 

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: 

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 activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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