United Heat Transfer IPO: Check issue size, GMP, price band and other details

Synopsis

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’s which are used as critical equipment’s for petrol and diesel engines, railway engines, maritime engines, cruse and cargo ships among others.

The SME IPO of United Heat Transfer opened for subscription on Tuesday and will close on October 24. The company aims to raise Rs 30 crore through the SME IPO and list the shares on NSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.

1) United Heat Transfer IPO size

The IPO is entirely a fresh equity sale of 50.84 lakh shares and through the issue, the company plans to raise about Rs 30 crore.

2) United Heat Transfer IPO price band

The company is offering its shares at Rs 56-59 apiece, and investors can bid for 2000 shares in 1 lot.

3) United Heat Transfer GMP

In the unlisted market, the company's shares have a GMP of Rs 10, indicating a premium of 17% over the issue price.

4) About United Heat Transfer

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’s which are used as critical equipment’s for petrol and diesel engines, railway engines, maritime engines, cruse and cargo ships among others.

5) Industry Overview

The electrical equipment market share in India is expected to increase from $52.98 billion in 2022 to $125 billion by 2027, implying a robust CAGR of 11.68%. The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach $72 billion by 2025.

Also Read: Shapoorji Pallonji Group's Afcons Infrastructure sets price band for its IPO. Check details

6) United Heat Transfer financial performance

For the year ended March 2024, the company clocked total revenues of Rs 21.19 crore and net profit of Rs 2.42 crore.

7) Objects of the offer

The net proceeds from the public offer will be used funding of repayment of loans, working capital requirements and other general corporate purposes.

8) Lead managers and Registrar

Swastika Investmart is acting as the lead manager to the issue and Link Intime India is the registrar.

9) Issue structure

About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and the other 15% for non-institutional investors.

10) Important dates

The IPO opened on October 22 and will close on October 24. The final allotment will likely be made on October 25. The company's shares will likely get listed on October 29.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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