Shree Refrigerations Limited, a key player in the Heating, Ventilation, and Air Conditioning (HVAC) industry, has opened its initial public offering (IPO) to a robust response. The ₹117.33 crore Book Built Issue has garnered strong investor interest, with the IPO subscribed 8.93 times as of 12:30 PM on July 28, 2025, its second day of the offer.

The IPO, comprising a fresh issue of 75.61 lakh shares worth ₹94.51 crore and an Offer for Sale (OFS) of 18.25 lakh shares worth ₹22.81 crore, is open for subscription from July 25 to July 29, 2025. The shares are expected to be listed on the BSE SME platform with a tentative listing date of August 1, 2025.

Business Overview

Shree Refrigerations is engaged in the manufacturing of chillers, refrigeration and air conditioning appliances, and parts used across the HVAC sector. With its operations primarily focused on the domestic market, the company supplies products to industries like Automotive, Marine, Print Media, Chemical, Pharmaceutical, and General Engineering.

Its diversified product portfolio, paired with a strong presence across multiple industrial verticals, has made it a significant contributor to India's HVAC ecosystem. The firm’s edge lies in its ability to integrate advanced systems with customised engineering solutions for a broad range of industry clients.

Leadership Team

The company is led by a team of experienced promoters:

• Mr. Ravalnath Gopinath Shende, who brings comprehensive experience in sales, manufacturing, planning, finance, and vendor development.

• Mrs. Rajashri Ravalnath Shende, known for leadership and team-building capabilities.

• Ms. Devashree Vishwesh Nampurkar, who has over 13 years of experience in sales and marketing, and strategic business development.

This multi-disciplinary leadership team ensures a well-rounded vision for the company’s future, which is being reflected in its financial performance and investor confidence.

Financial Performance

The company has shown consistent revenue and profitability growth over the last three financial years. Below is a breakdown:

This growth signals operational scalability and profitability, attributes that are generally favoured by both institutional and retail investors.

IPO Pricing & Lot Size

The price band is set between ₹119 and ₹125 per share. At the upper price band of ₹125, the market capitalisation of the company stands at ₹445.38 crore.

The lot size for this SME IPO is 1,000 shares, with retail investors required to apply for a minimum of 2 lots (i.e., 2,000 shares) amounting to ₹2,50,000.

Given the high-ticket size, the IPO is likely to attract participation from high-net-worth individuals (HNIs) and well-informed retail investors.

Lead Managers and Registrar

• Lead Manager: Narnolia Financial Services Limited

• Registrar: MUFG Intime India Private Limited

• Market Maker: Mansi Share and Stock Broking Private Limited

The involvement of reputed intermediaries gives confidence in the IPO process, ensuring smooth allotment and listing procedures.

Grey Market Premium (GMP) Insights

As per market observers, the GMP of Shree Refrigerations IPO stands at ₹40, indicating a potential 32% premium over the issue price. Based on the IPO price of ₹125, the expected listing price could touch ₹165 per share.

While the GMP should be taken with caution, it provides a snapshot of market sentiment among investors in the unlisted space.

Anchor Investors Report

Shree Refrigerations has already raised ₹33.41 crore from anchor investors at the upper end of the price band. A total of 26,73,000 shares have been allocated, showing institutional confidence in the issue.

These shares were allotted from the Qualified Institutional Buyers (QIBs) reservation portion, which often reflects strong due diligence by large investors.

IPO Objectives

The company intends to utilise the net proceeds from the IPO for the following:

1. ₹70 crore for funding working capital requirements.

2. Balance for general corporate purposes.

The infusion into working capital will enhance the company’s capacity to scale operations and strengthen its supply chain across India.

Valuation Metrics

Let’s review how the company fares on valuation grounds:

• Pre-Issue EPS (FY24): ₹5.25

• Post-Issue EPS (FY24): ₹3.80

• Pre-Issue P/E Ratio: 23.80x

• Post-Issue P/E Ratio: 32.88x

• Industry P/E Benchmark: 81x

• ROCE: 23.22%

• ROE: 15.44%

The post-issue valuation appears conservative when compared to industry peers, suggesting room for growth post listing. The return ratios are healthy, indicating efficient capital utilisation.

Allotment and Listing

• IPO Closes: July 29, 2025 (Tuesday)

• Allotment Date: July 30, 2025 (Wednesday)

• Listing Date: August 1, 2025 (Friday)

Investors can check the allotment status on the registrar’s website (MUFG Intime India Pvt. Ltd.) using application number, PAN, or DP Client ID.

How to Check Allotment Status?

1. Go to the registrar’s IPO allotment page.

2. Select “Shree Refrigerations IPO” from the dropdown.

3. Enter either PAN / Application No / DP ID.

4. Submit and view allotment status.

Final Verdict

The Shree Refrigerations IPO ticks all the right boxes — robust financial growth, reasonable valuations, healthy return ratios, and strong anchor backing. With GMP reflecting a 32% premium, it appears well-positioned for listing gains.

Given the company’s strategic positioning in the HVAC sector, expanding client base, and solid fundamentals, investors looking for short-term listing profits as well as medium-term growth may consider subscribing to the IPO.

Disclaimer: This review is for informational purposes only. It should not be construed as investment advice. Investors must consult their financial advisors before investing. Past performance is not indicative of future results. Investment in securities is subject to market risks.

The Upcoming IPOs in this week and coming weeks are M&B Engineering, Cash Ur Drive Marketing, Renol Polychem, Jyoti Global Plast, Takyon Networks, Mehul Colours, Aditya Infotech, Sri Lotus Developers & Realty, Lakshmi India Finance, Jyoti Global Plast, B.D. Industries (Pune), Kaytex Fabrics, Umiya Mobile, Repono, NSDL.

The Current active IPO are Shree Refrigerations, Sellowrap Industries, Shanti Gold International, Patel Chem Specialities, Brigade Hotel Ventures, Indiqube Spaces, GNG Electronics, TSC India.

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