United Heat Transfer IPO day 1: NSE SME issue booked 2.6 times driven by NIIs, retail investors

According to NSE data, the heat exchanger manufacturer's initial public offering (IPO) received bids for 87.62 lakh shares compared to 33.94 lakh shares on offer.

Among investor categories, the Qualified Institutional Buyers (QIBs) applied for 16.94 lakh shares against 9.74 lakh shares on offer, leading to an overall subscription of 1.74 times in the category. The NIIs showed the highest demand with bids for 30.94 lakh shares against 7,28,000 shares on offer for the category, taking the subscription to 4.25 times.

Retail Individual Investors applied for 42.5 lakh shares against their quota of 16.92 shares, subscribing the category 2.52 times.

Ahead of the launch of the IPO, the company raised ₹8.46 crore from anchor investors on October 21. The company allotted 1,434,000 shares at a price of ₹59 per share to six fund schemes.

Saint Capital Fund Rajasthan Global Securities Pvt. Limited, Swyom India Alpha Fund, Zeta Global Fund, VIJIT GROWTH FUND and Bharat Ventures Opportunities Fund are anchor investors.

United Heat Transfer IPO details

The ₹30-crore United Heat Transfer Limited IPO, a book-built offer, comprises a fresh issue of 50.84 lakh shares. The IPO price band has been fixed at ₹56 to ₹59 per share. The minimum lot size is a single lot of 2,000 Shares for the retail investors. The minimum bid amount for retail investors is ₹1,18,000.

Swastika Investmart Ltd. is the book-running lead manager, while Link Intime India Private Ltd. is the IPO registrar.

United Heat Transfer IPO key dates

United Heat Transfer IPO opened for subscription on October 22 and closes on October 24.

The company is scheduled to finalise the IPO share allotment status on Friday, October 25. Refunds will be initiated for non-allottees on October 26, and the successful applicants will receive the shares in their demat accounts on the same day.

The IPO listing date has been tentatively fixed as October 29. Shares of United Heat Transfer Limited will be listed on the NSE SME platform.

United Heat Transfer IPO objective

The company has proposed to utilise ₹5.73 crore of the IPO proceeds for debt repayment. As of March 31, 2024, the company had a total outstanding debts from banks and other sources amounting to ₹32 crore. The company will use ₹14 crore to meet incremental working capital requirements.

About United Heat Transfer

United Heat Transfer Limited, incorporated in 1995, manufactures a range of shell and tube heat exchangers, air-cooled heat exchangers, pressure vessels, and process flow skids equipment. These components are critical equipment for petrol and diesel engines, railway engines, maritime engines, cruise and cargo ships, ferries, pleasure boats, marine diesels, mining trucks, heavy engines, and fishing boats.