United Heat Transfer IPO: Here are 10 Key things you need to know

1. United Heat Transfer IPO Opening and Subscription Details
The United Heat Transfer IPO will open for subscription on October 22, 2024, and close on October 24, 2024. It is an NSE SME IPO aiming to raise ₹30.00 crores through a 100% fresh issue. Each equity share has a face value of ₹10, with the price band set at ₹56-₹59. Investors can participate by bidding for a minimum lot size of 2,000 shares.

2. Company Overview: United Heat Transfer Limited
Founded on January 27, 1995, United Heat Transfer Limited specializes in manufacturing heat exchangers, air-cooled heat exchangers, and pressure vessels. Headquartered in Nashik, Maharashtra, the company serves various industries, including marine diesel engines, trucks, and pleasure boats. It ensures efficient production with a focus on quality and timely delivery.

3. United Heat Transfer Financial Performance
In the fiscal year 2024, United Heat Transfer reported a revenue of ₹64.10 crores, with a profit after tax of ₹6.24 crores. The company also demonstrated growth in financials from 2022 to 2024, indicating its increasing market presence and profitability.

4. IPO Objectives: Purpose of the Issue
The proceeds from the United Heat Transfer IPO will be used for several purposes:

• Repayment of debt
• Meeting incremental working capital requirements
• General corporate purposes

5. IPO Timeline: Key Dates

• IPO Open Date: October 22, 2024
• IPO Close Date: October 24, 2024
• Basis of Allotment: October 25, 2024
• Refunds: October 28, 2024
• Credit to Demat Account: October 28, 2024
• Listing Date: October 29, 2024

6. Market Lot and Investment Details
The IPO has a minimum lot size of 2,000 shares, with the minimum investment amounting to ₹118,000. For small high-net-worth individuals (S-HNI), the minimum lot size is 4,000 shares, requiring an investment of ₹236,000.

7. Financial Metrics and Valuation
Key financial ratios for FY2024 include:

• Return on Equity (ROE): 30.62%
• Return on Capital Employed (ROCE): 31.77%
• EBITDA Margin: 16.60%
• Earnings Per Share (EPS): ₹4.89
• Net Asset Value (NAV): ₹15.98
  These metrics reflect the company’s robust profitability and efficient capital utilization.

8. Peer Comparison and Competitive Position
United Heat Transfer’s competitors include Patel Airtemp India Limited and The Anup Engineering Limited. While their financials vary, United Heat Transfer’s focus on specialized products and diverse applications helps it stand out in the industry.

9. Promoters of United Heat Transfer Limited
The company’s promoters include Mr. Yogesh Vishwanath Patil, Mr. Vivek Vishwanath Patil, Mr. Shatanik Vivek Patil, and Ms. Durva Yogesh Patil. Their leadership and expertise have driven the company’s growth over the years.

10. How to Apply for the United Heat Transfer IPO
Investors can apply for the IPO through the ASBA (Applications Supported by Blocked Amount) process via their banks or through offline IPO forms. Additionally, investors can use UPI-based applications via their stock brokers.

Conclusion
The United Heat Transfer IPO presents an opportunity for investors to engage with a growing company in the heat exchanger and pressure vessel manufacturing sector. With plans to use funds for debt repayment and expansion, the company aims to strengthen its financial position and market reach. The IPO will be listed on the NSE SME platform, offering diverse investment segments to retail, QIBs, and HNIs.