United Heat Transfer shares hit a lower circuit after making a muted debut at ₹60.95 apiece on NSE SME

United Heat Transfer Limited made a muted debut on Tuesday, October 29, with its shares listing nearly flat on the NSE SME platform.

Shares of United Heat Transfer opened at ₹60.95 apiece on the NSE Emerge platform at a premium of 3.3% compared to the issue price of ₹59 apiece.

More than 17.8 lakh shares changed hands on the NSE within 30 minutes of trade. The trading value stood at ₹9.74 crore, while the market capitalisation reached ₹112.31 crore.

After listing, the stock moved between a high of ₹63.95 apiece and a low of ₹57.95 in early trade. The stock recovered some of its losses from the intraday low to trade at ₹58.2 apiece, down 4.4% at 11:00 am.

The IPO investors, who were allotted at least a single lot of shares, profited from the listing. The minimum bidding quantity for the IPO was 2,000 shares for retail investors. Investors who received at least one lot in the primary issue would have made a profit of ₹3,900 at the listing price.

At the listing price of ₹60.95, the value of the single lot stood at ₹1,21,000 (₹60.95 x 2,000) compared to the bidding value of ₹1,18,000 (₹59 x 2000).

United Heat Transfer IPO details

Engine parts manufacturer United Heat Transfer raised around ₹30 crore through its public offer last week. The public offer was a 100% book-built issue and comprised a fresh issuance of 50.84 lakh shares. The company had fixed the band at ₹56 to ₹59 per share for the IPO. The minimum lot size for an application was 2,000 shares.

According to exchange data, United Heat Transfer IPO was booked 83.7 times in the three-day bidding period that ended on October 24. Applications for 28.4 crore shares were received against 33.94 lakh shares on offer.

The retail investor portion was booked 98.93 times as bids for 16.78 crore shares were received against 33,94,000 equity shares on offer.

Non-institutional investors’ (NIIs) portion was subscribed 124.72 times. Bids for 9.10 crore shares were received against 7,28,000 shares on offer.

The qualified institutional buyers segment was subscribed 26.56 times. Applications for 2.58 crore shares were received against 9,74,000 shares on offer.

United Heat Transfer raised ₹8.46 crore from anchor investors ahead of the IPO's launch. The company allocated 14.34 lakh equity shares at an issue price of ₹59 per share to six fund schemes.

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

The company plans to utilise ₹5.73 crore of IPO money to repay debt. The total outstanding loans from banks and other sources amounted to ₹36.92 crore as of March 31, 2024. The company will use ₹14 crore for working capital requirements and the remaining funds for general corporate purposes.

United Heat Transfers manufactures equipment such as heat exchangers, process flow skids and pressure vessels, which are used in petrol and diesel engines, mining trucks, maritime vessels and heavy machinery.