United Heat Transfer
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Oct 2024 – 24 Oct 2024
- Listing date
- 29 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹59 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹30 Cr
- Market cap at offer price
- ₹112 Cr
- Promoter holding
- 91.59% → 67.09% pre-issue → post-issue
- ISIN
- INE0SMR01011
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Swastika Investmart Ltd.
- Registered office
- Plot No F-131, MIDC Area, Ambad, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 14,34,000 | — | — |
| Market maker | 2,56,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹59
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,18,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,36,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,44,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,62,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.48 | 3.83 |
| P/E (×) | 13.17 | 15.40 |
| Price to book (×) | 3.69 | — |
| Market cap | — | ₹112 Cr |
Key performance indicators
- Return on net worth
- 8.46%
- ROCE
- 10.79%
- Debt / equity
- 1.12
- PAT margin
- 11.44%
- NAV per share
- ₹20.58
- Price to book
- 3.69
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About United Heat Transfer
United Heat Transfer Limited was incorporated on January 27, 1995, and is engaged in manufacturing a range of shell and tube heat exchangers, air cooled heat exchangers, pressure vessels and process flow skids equipment which are used as critical equipment for petrol and diesel engines, railway engines, maritime engines, cruise and cargo ships, ferries, pleasure boats, marine diesels, mining trucks, mega-yachts, heavy engines, fishing boats, heavy trucks, freighters, trawlers, heavy haulages, power gen sets, super tankers, off highway engines. The company manufactures heat transfer equipment as per TEMA (Tubular Exchanger Manufacturers Association) standards, ASME Section VIII Div. 1, Div. 2 (unfired pressure vessels), API 660, 661, NES standards. The company extends its expertise with the growing national and multinational OEM industry for heat exchangers, moisture separators pressure vessels and process flow skids. The company's strength lies in the high quality and fine craftsmanship of its products, the engineering expertise of its team and the quest to develop technologically new products.
Company Analysis
from RHPUnited Heat Transfer Limited manufactures shell and tube heat exchangers, air cooled heat exchangers, pressure vessels, and process flow skids for petrol and diesel engines, maritime engines, mining trucks, and power generation applications across India and internationally.
United Heat Transfer Limited was incorporated on January 27, 1995, and is engaged in manufacturing a range of shell and tube heat exchangers, air cooled heat exchangers, pressure vessels and process flow skids equipment which are used as critical equipment for petrol and diesel engines, railway engines, maritime engines, cruise and cargo ships, ferries, pleasure boats, marine diesels, mining trucks, mega-yachts, heavy engines, fishing boats, heavy trucks, freighters, trawlers, heavy haulages, power gen sets, super tankers, off highway engines. The company manufactures heat transfer equipment as per TEMA (Tubular Exchanger Manufacturers Association) standards, ASME Section VIII Div. 1, Div. 2 (unfired pressure vessels), API 660, 661, NES standards. The company extends its expertise with the growing national and multinational OEM industry for heat exchangers, moisture separators pressure vessels and process flow skids. The company's strength lies in the high quality and fine craftsmanship of its products, the engineering expertise of its team and the quest to develop technologically new products.
Objects of the Issue
- Repayment of Loans ₹573.38 Lakhs p.16
- To meet Working Capital requirements ₹1,400.00 Lakhs p.16
- General Corporate Purpose p.16
- Repayment of Debt ₹573.38 Lakhs p.79
- To Meet Incremental Working Capital Requirements ₹1,400.00 Lakhs p.79
- General Corporate Purpose p.79
- Not explicitly stated in this excerpt
Issue Structure
- Total Issue
- ₹[●] Lakhs
- Fresh Issue
- 50,84,000 Equity Shares aggregating to ₹[●] Lakhs
- Offer for Sale
- NIL
- Price Band
- ₹[●]/- (Floor Price) to ₹[●]/- (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares
- Face Value
- ₹10/- per Equity Share
Business Model
The company manufactures and sells heat transfer equipment (shell and tube heat exchangers, air cooled heat exchangers, pressure vessels and process flow skids) to OEM customers in India and internationally. Revenue is generated through sales of these manufactured products to the automotive, marine, power generation and industrial sectors.
Business Segments
SWOT Analysis
- • Established manufacturing expertise in heat exchangers since 1995(p.15)
- • Compliance with international quality standards (TEMA, ASME, API, NES)(p.15)
- • Strong technical expertise and commitment to product innovation(p.15)
- • Well-experienced management team with long-standing business relationships(p.86)
- • Integrated manufacturing facilities and strategic location(p.86)
- • Strong growth in EBITDA margin improvement over recent years(p.88)
- • Significant improvement in profitability with PAT margin rising to 10.36% in FY24(p.88)
- • Well-experienced management team with 29+ years in heat exchanger industry(p.117)
- • Integrated manufacturing facilities with high quality standards and precision engineering(p.117)
- • Registered approved vendor with prestigious oil and petroleum industry companies(p.117)
- • Long-standing customer relationships built on trust and consistent delivery(p.117)
- • Strategic location in Nashik with developed industrial infrastructure and utilities(p.117)
- • Diverse global customer base across multiple continents reducing single-market dependency(p.119)
- • Over 100 employees providing solid operational foundation for growth(p.119)
- • Diversified product portfolio and manufacturing expertise(p.203)
- • Two state-of-the-art manufacturing facilities with strong infrastructure(p.203)
- • Compliance with international quality and manufacturing standards(p.203)
- • Established relationships with diverse customer base(p.204)
- • Strong financial performance and improving profitability(p.207)
- • Heavy customer concentration risk—top 5 customers represent 79.25% of sales(p.22)
- • Geographic concentration in domestic sales—94.66% from 5 states(p.22)
- • High supplier concentration—top 10 suppliers account for 74.04% of purchases(p.22)
- • Significant debt burden of ₹3,202.13 Lakhs as of July 31st, 2024(p.31)
- • One promoter director (Ms. Durva Yogesh Patil) has limited heat exchanger industry experience(p.22)
- • Contingent liabilities of ₹815.83 Lakhs(p.31)
- • No long-term supply agreements for raw materials(p.23)
- • Corporate guarantee of ₹100 Lakhs issued for group company debt(p.22)
- • Significant debt burden with total outstanding indebtedness of Rs. 3,692.18 Lakhs as of March 31, 2024(p.80)
- • Heavy reliance on major shareholders—promoters hold 91.59% of pre-issue paid-up capital(p.74)
- • Limited independent shareholder base with only 13 public shareholders holding 8.41% of shares(p.62)
- • Significant revenue decline of 13.95% in FY24 compared to FY23(p.88)
- • Capacity utilization challenges with heat exchanger utilization at only 18.66% in FY24(p.123)
- • Struggles to keep up with demand during peak seasons affecting production efficiency(p.119)
- • Limited adaptability to rapidly changing market trends and technologies(p.119)
- • Declining revenue performance with 13.95% contraction in FY24(p.109)
- • High dependence on few key customer segments across industries(p.118)
- • High dependence on top customers for majority of revenue(p.204)
- • Significant reliance on few suppliers(p.210)
- • High finance costs relative to operations(p.207)
- • Revenue decline in recent fiscal year(p.206)
- • High leverage and debt burden(p.211)
- • India's targeted economic growth and employment expansion to 8-8.5% GDP between 2023-2030(p.15)
- • Strong export growth trajectory—Indian exports targeted to reach US$ 1 trillion by 2030(p.15)
- • Exports currently only 4.72% of sales—significant expansion potential in international markets(p.22)
- • Global heat exchanger market projected to grow from $16.7 billion in 2020 to $28.3 billion by 2030 at CAGR of 5.5%(p.103)
- • Rising demand for energy-efficient heat exchangers driven by sustainability concerns(p.104)
- • Expansion of chemical processing industry driving heat exchanger demand(p.104)
- • Strong infrastructure investment from Indian government with Rs. 11.11 lakh crore capital expenditure in 2024-25(p.101)
- • India's engineering sector projected to grow with 100% FDI permitted and strategic government support(p.100)
- • India's defence sector growth with US$74.8 billion budget and export targets of US$6.02 billion by 2028-29(p.105)
- • Expansion into emerging markets such as Asia and South America(p.119)
- • Growing focus on sustainability and energy efficiency in heat exchanger solutions(p.119)
- • Digital marketing and e-commerce expansion to reach wider audience(p.119)
- • Collaborations with industry partners for new product and technology development(p.119)
- • India's diesel generator market growth from USD 1.10 billion to USD 1.42 billion by 2028 at 5.20% CAGR(p.106)
- • India's defence production target of US$25 billion by 2025 including US$5 billion from exports(p.105)
- • Expansion of manufacturing capacity at Talegaon facility(p.203)
- • Increasing exports and international market penetration(p.186)
- • Growth in capital expenditure for fixed assets(p.167)
- • Diversification into related product segments and services(p.220)
- • Public listing and capital raising to support growth(p.222)
- • Export sales concentrated in 5 countries (France, Holland, Poland, Netherlands, USA)(p.22)
- • Dependence on manufacturing facility—operational disruptions could halt production(p.23)
- • Exposure to electricity and water supply shortages(p.28)
- • Vulnerability to commodity price fluctuations and raw material cost pressures(p.23)
- • Interest rate fluctuation risk affecting debt service costs(p.36)
- • India-dependent revenue (>90%) exposed to macroeconomic slowdown(p.36)
- • Regulatory and licensing approval risks for manufacturing operations(p.30)
- • Safety and environmental compliance costs in manufacturing operations(p.31)
- • Hazardous manufacturing processes creating accident and liability risks(p.35)
- • Risk of transportation disruptions affecting raw material supply and product delivery(p.28)
- • Higher raw material prices and increased manufacturing costs constraining market growth(p.105)
- • Exposure to cyclical power generation and oil & gas industries dependent on commodity prices(p.104)
- • Global supply chain risks and economic slowdown affecting merchandise exports(p.102)
- • Intense competition in capital goods manufacturing with presence of larger international players(p.99)
- • Intense competition in heat exchanger equipment industry threatening market share(p.119)
- • Growing trend of renewable power generation reducing demand for diesel generators(p.107)
- • Increasing renewable energy capacity reducing dependence on diesel generator sets(p.107)
- • Dependence on imported raw materials from Italy and other countries creating supply chain risks(p.114)
- • Significant financial leverage with short-term borrowings of Rs 1,779.12 lakhs(p.165)
- • Economic cyclicality and macro-economic sensitivity(p.204)
- • Intense competition from domestic and international players(p.210)
- • Demand variability and customer inventory management(p.204)
- • Impact of foreign exchange volatility(p.186)
- • Regulatory and tax compliance risks(p.195)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Yogesh Vishwanath Patil | Promoter | 39.01% | 28.57% |
| Mr. Vivek Vishwanath Patil | Promoter | 40.08% | 29.36% |
| Ms. Durva Yogesh Patil | Promoter | 1.72% | 1.26% |
| Mr. Shatanik Vivek Patil | Promoter | Negligible | Negligible |
| Mrs. Meenal Yogesh Patil | Promoter Group | 5.06% | 3.71% |
| Mrs. Pranita Vivek Patil | Promoter Group | 5.71% | 4.18% |
| Mr. Yogesh Vishwanath Patil | Promoter | 39.01% | 28.57% |
| Mr. Vivek Vishwanath Patil | Promoter | 40.08% | 29.36% |
| Mrs. Meenal Yogesh Patil | Promoter Group | 5.06% | 3.71% |
| Mrs. Pranita Vivek Patil | Promoter Group | 5.71% | 4.18% |
| Ms. Durva Yogesh Patil | Promoter | 1.72% | 1.26% |
| Mr. Shatanik Vivek Patil | Promoter | Negligible | Negligible |
| Ms. Praketa Yogesh Patil | Promoter Group | Negligible | Negligible |
| Ms. Urjaswati Vivek Patil | Promoter Group | Negligible | Negligible |
| Mr. Yogesh Vishwanath Patil | Promoter/Chairman and Managing Director | 54,29,850 equity shares (as on date of RHP) | — |
| Mr. Vivek Vishwanath Patil | Promoter/Whole Time Director | 55,79,700 equity shares (as on date of RHP) | — |
| Ms. Durva Yogesh Patil | Promoter/Non-Executive Director | 2,40,000 equity shares (as on date of RHP) | — |
| Mr. Shatanik Vivek Patil | Promoter/Non-Executive Director | 150 equity shares (as on date of RHP) | — |
| Mr. Yogesh Vishwanath Patil | Promoter | 39.01% | — |
| Mr. Vivek Vishwanath Patil | Promoter | 40.08% | — |
| Miss. Durva Yogesh Patil | Promoter | 1.72% | — |
| Mr. Shatanik Vivek Patil | Promoter | 0.00% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.