United Heat Transfer Limited is set to launch its Initial Public Offering (IPO) from October 22 to October 24, 2024, aiming to raise approximately ₹30 crores. Established in 1995, the company specializes in manufacturing heat exchangers, air-cooled heat exchangers, and pressure vessels for various applications, including automotive and marine industries. The IPO price band is set between ₹56 and ₹59 per share, with a fresh issue of about 50.84 lakh equity shares.
₹15
₹59
₹60.95
Expert Opinions
The United Heat Transfer IPO is generating favorable market sentiment, reflecting investor optimism in the manufacturing sector, particularly for thermal management solutions. The company’s strengths lie in its established reputation for producing high-quality heat exchangers and pressure vessels, serving diverse industries such as automotive and marine. However, potential risks and challenges include market competition and the need for continuous innovation to meet evolving customer demands.
In terms of valuation analysis, the price band of ₹56 to ₹59 per share appears attractive, with a price-to-earnings ratio of approximately 11.45, suggesting a compelling entry point for investors. The growth prospects are promising, bolstered by plans to enhance production capabilities and expand into new markets. For investors, a long-term investment perspective is advisable, as United Heat Transfer is well-positioned to capitalize on the increasing demand for energy-efficient solutions, making it a potentially rewarding investment opportunity in a growing sector.
Investor Considerations
Investors considering the United Heat Transfer IPO should evaluate several key factors. The company performance and fundamentals are encouraging, with revenue reported at ₹64.10 crores for FY2024, alongside a significant increase in profit after tax to ₹6.24 crores, indicating improved operational efficiency. The sector outlook for thermal management solutions remains robust, driven by increasing demand across industries such as automotive and marine.
In terms of IPO valuation, the price band of ₹56 to ₹59 per share is appealing, especially with a price-to-earnings ratio of approximately 11.45, suggesting a reasonable entry point. The growth prospects are promising, supported by plans to expand production capabilities and enhance product offerings. However, potential risk factors include market competition and the need for continuous innovation to maintain relevance. For investors, a long-term investment horizon is advisable, as United Heat Transfer is well-positioned to benefit from the growing demand for energy-efficient solutions in various sectors.
| Date | GMP | Trend |
|---|---|---|
| 28 Oct 2024 10.27 | ₹15 | Up |
| 27 Oct 2024 13.29 | ₹10 | --- |
| 26 Oct 2024 11.12 | ₹10 | Down |
| 25 Oct 2024 10.41 | ₹20 | --- |
| 24 Oct 2024 19.42 | ₹20 | Down |
| 23 Oct 2024 19.11 | ₹31 | Up |
| 22 Oct 2024 10.51 | ₹10 | --- |
| 21 Oct 2024 11.17 | ₹10 | --- |
| 19 Oct 2024 18.39 | ₹10 | --- |
FAQs
The Grey Market Premium demonstrated poor accuracy in predicting United Heat Transfer’s listing gains, as it significantly overestimated the potential returns with a predicted premium of ₹15 (25.42% gain) while the actual listing showed only a modest premium of ₹1.95 (3.31% gain), resulting in a substantial prediction error of 17.64%, indicating that while GMP correctly predicted the positive listing direction, it failed to accurately gauge the magnitude of the gains.
United Heat Transfer IPO Current GMP is ₹15.
United Heat Transfer IPO Expected Returns is 25.42%.
United Heat Transfer IPO estimated listing price is ₹74.