United Heat Transfer IPO Day 1: United Heat Transfer IPO received strong interest on the first day of bidding, with an overall subscription of 1.24 times by 2:30 PM on Tuesday, October 22, 2024. The retail category was subscribed 1.32 times, while qualified institutional buyers (QIBs) showed the most enthusiasm, with a 1.74 times subscription. However, non-institutional investors (NIIs) quotas saw just 0.40 times subscription.
The SME IPO, which aims to raise ₹30 crore, will remain open for subscription until October 24, with plans to list on the NSE SME platform. The company is offering 50.84 lakh fresh shares in the price range of ₹56-59 per share, with a minimum bid of 2,000 shares per lot. In the grey market, the company’s shares are currently trading at a premium of ₹10, reflecting a 17% markup over the issue price.
United Heat Transfer SME IPO’s latest GMP is ₹14.
United Heat Transfer overview
United Heat Transfer manufactures critical industrial equipment such as heat exchangers and pressure vessels, used across sectors like railways, maritime, and oil and gas. The company reported revenues of ₹21.19 crore and a net profit of ₹2.42 crore for the fiscal year ending March 2024. Proceeds from the IPO will be used to repay loans, fund working capital needs, and cover general corporate expenses.
In the IPO, 50% portion is reserved for QIBs, 35% for retail investors, and 15% for NIIs. Swastika Investmart is the lead manager for the IPO, while Link Intime India is handling the registrar duties. The final allotment of shares is expected by October 25, with the listing likely to take place on October 29. With strong demand from institutional buyers, the IPO is expected to gain further traction in the coming days.
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