Shree Refrigerations IPO to open on 25th July

Mumbai, 24 July 2025: Shree Refrigerations IPO will open for subscription tomorrow, 25th July. The offering comprises a fresh issue of 75.61 lakh shares worth ₹94.51 crore and an offer-for-sale (OFS) of 18.25 lakh shares aggregating to ₹22.81 crore. The IPO will list on the BSE SME platform with a tentative listing date of 1 August 2025.

Price Band, Lot Size, and Minimum Investment Explained

The IPO price band has been fixed at ₹119-₹125 per share. Investors can bid for a minimum of 2,000 shares, amounting to a minimum investment of ₹2,38,000 for retail participants. For high-net-worth individuals (HNIs), the minimum lot size is 3,000 shares, translating to an investment of ₹3,75,000.

Anchor Investors Secure ₹33.41 Crore Ahead of Launch

On 24 July 2025, the company raised ₹33.41 crore from anchor investors, who were allotted 26.73 lakh shares. These shares will remain locked in, with 50% held until 29 August 2025 and the remainder until 28 October 2025.

IPO Reservation Breakup and Promoter Stake Dilution

Out of the 93.86 lakh shares on offer:

• 4.70 lakh shares (5.01%) are reserved for market makers
• 44.55 lakh shares (47.46%) for QIBs
• 13.39 lakh shares (14.27%) for HNIs
• 31.22 lakh shares (33.26%) for retail investors

Post-issue, promoter holding will reduce from 56.6% to 44.59%. The promoters include Mr. Ravalnath Gopinath Shende, Mrs. Rajashri Ravalnath Shende, and Mrs. Devashree Vishwesh Nampurkar.

IPO Timeline and Key Milestones

• IPO Opens: 25 July 2025

• IPO Closes: 29 July 2025
• Allotment Finalisation: 30 July 2025
• Refund Initiation & Demat Credit: 31 July 2025
• Tentative Listing Date: 1 August 2025
• UPI Mandate Cut-off: 5 PM on 29 July 2025

Use of IPO Proceeds Highlights Strategic Priorities

• ₹70 crore will be allocated for working capital requirements
• The remaining funds will be used for general corporate purposes

About Shree Refrigerations Ltd.: From Custom Chillers to Marine HVAC

Founded in 2006, Shree Refrigerations Ltd. is a Maharashtra-based manufacturer of HVAC systems. Its product portfolio includes chillers, marine HVAC units, spray dampening systems, and custom-engineered components. It serves diverse sectors like automotive, marine, chemical, pharmaceuticals, print media, and general engineering. With a production facility in Karad, the firm employs 129 permanent and 165 contractual staff.

Financial Performance Signals Strong Growth Momentum

As per the restated consolidated financials for the year ending 31 March 2025, Shree Refrigerations Ltd. demonstrated a clear growth trajectory. The company’s revenue rose to ₹99.10 crore, marking a 22% increase from ₹81.19 crore in FY24, driven by rising demand across its core product segments. Its Profit After Tax (PAT) grew to ₹13.55 crore, reflecting a 17% year-on-year increase, showcasing effective cost management and stable margins.

The company’s EBITDA improved to ₹26.94 crore from ₹24.38 crore, indicating consistent operating efficiency. In terms of financial strength, net worth nearly doubled to ₹114.74 crore from ₹60.72 crore, while reserves and surplus surged to ₹109.13 crore, demonstrating strong internal accruals. Total borrowings increased slightly to ₹39.73 crore, suggesting that the company’s growth has been largely driven by internal resources and measured leverage.

Key Performance Indicators Reflect Operational Efficiency

Shree Refrigerations Ltd.’s key metrics as of 31 March 2025 point to sound fundamentals and operational strength. Its Return on Equity (ROE) stands at 15.44%, signalling effective use of shareholder capital. A robust Return on Capital Employed (ROCE) of 23.22% reflects the company’s efficiency in generating returns from its total capital base.

The Debt-to-Equity ratio at 0.37 indicates a prudent and conservative capital structure. Profitability remains strong, with a PAT margin of 13.72% and an EBITDA margin of 27.29%, underscoring the company’s ability to retain healthy margins. Furthermore, the Price-to-Book Value of 4.98 suggests positive market sentiment and investor confidence in the company’s future earnings potential.

Peer Comparison Shows Competitive Edge Despite Smaller Scale

While Shree Refrigerations operates on a smaller scale compared to its peers, it holds its own in profitability. With an EPS of ₹5.03 and RoNW of 15.44%, the company compares reasonably to Johnson Controls-Hitachi Air Conditioning India Ltd., which posted an EPS of ₹21.60 and RoNW of 9.60%, though at a significantly higher P/E of 81.33. This indicates that Shree Refrigerations offers a balanced mix of value and performance.

Lead Managers and Registrars

Narnolia Financial Services Ltd. is the book-running lead manager, while MUFG Intime India Pvt. Ltd. (Link Intime) acts as the registrar. The IPO’s market-making responsibilities lie with Mansi Share & Stock Broking Pvt. Ltd.

Shree Refrigerations IPO offers investors a chance to participate in a steadily growing HVAC manufacturer with strong financials and sector diversity. Backed by rising demand and efficient operations, the IPO supports its expansion while providing a credible entry into the SME space.

REF: https://www.shreeref.com/img/invester/IPO/RHP_SRL_.pdf

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