Shree Refrigerations Limited, a company engaged in the manufacturing of Chillers, refrigeration, and air conditioning appliances, has seen massive investor interest in its SME IPO. The issue, which opened on July 25, 2025, and closed on July 29, 2025, was oversubscribed by an impressive 174.25 times, signaling strong investor appetite and high market expectations.

The IPO size was ₹117.33 crores, comprising a Fresh Issue of 75.61 lakh shares worth ₹94.51 crores and an Offer for Sale (OFS) of 18.25 lakh shares totaling ₹22.81 crores. The price band for the issue was fixed between ₹119 and ₹125 per share. The market capitalization of the company at the upper band price of ₹125 per share is pegged at ₹445.38 crores.

Company Overview

Shree Refrigerations is an established player in the Heating, Ventilation, and Air Conditioning (HVAC) sector. Its product offerings cater to a wide range of industries including Automotive, Marine, Print Media, Chemical, Pharma, and General Engineering. The company's focus on advanced systems and equipment has enabled it to build a strong domestic presence.

IPO Subscription Details

On the final day of subscription, July 29, 2025, the IPO saw overwhelming demand, with total subscription reaching 174.25 times. This high level of oversubscription reflects investors' confidence in the company’s business model, sectoral outlook, and growth prospects.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) of the IPO is reported to be around ₹40, suggesting an expected listing price of ₹165, a gain of approximately 32% over the issue price. However, investors should note that GMP is unofficial and based on unregulated trading. It should not be considered a reliable indicator of post-listing performance.

Anchor Investor Participation

Shree Refrigerations raised ₹33.41 crores from Anchor Investors at the upper price band of ₹125 per share. A total of 26,73,000 shares were allotted to anchor investors, a move that often instills confidence among retail and institutional investors.

Allotment and Listing Timeline

The IPO allotment is expected to be finalized on Wednesday, July 30, 2025, and shares are likely to be listed on the BSE SME platform on or around Friday, August 1, 2025.

Steps to Check IPO Allotment Status:

1. Visit the official registrar’s website (MUFG Intime India Private Limited).

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

3. Enter your PAN, application number, or DP Client ID.

4. Submit to check allotment status.

IPO Details Summary

• IPO Opening Date: July 25, 2025

• IPO Closing Date: July 29, 2025

• Issue Size: ₹117.33 crores

• Fresh Issue: ₹94.51 crores (75.61 lakh shares)

• OFS: ₹22.81 crores (18.25 lakh shares)

• Price Band: ₹119 to ₹125 per share

• Lot Size: 1,000 shares

• Minimum Investment: 2 lots (₹2,50,000)

• Listing: BSE SME

• Market Maker: Mansi Share and Stock Broking Private Limited

• Lead Manager: Narnolia Financial Services Limited

Use of IPO Proceeds

The net proceeds from the fresh issue will be used primarily for the following purposes:

1. Working capital requirements: ₹7,000 lakhs

2. General corporate purposes

Financial Performance

Shree Refrigerations has demonstrated consistent growth in revenue and profitability over the last three fiscal years:

• FY2023-24 Revenue: ₹8,118.70 lakh → FY2024-25 Revenue: ₹9,909.53 lakh

• FY2023-24 EBITDA: ₹2,526.57 lakh → FY2024-25 EBITDA: ₹2,731.22 lakh

• FY2023-24 PAT: ₹1,153.06 lakh → FY2024-25 PAT: ₹1,354.66 lakh

These figures reflect a solid and sustainable business model, with rising operating margins and efficient cost control. The Return on Capital Employed (ROCE) for FY24 stands at 23.22%, while Return on Equity (ROE) and Return on Net Worth (RoNW) are both 15.44%.

Valuation Analysis

The Pre-Issue EPS for FY24 is ₹5.25, and Post-Issue EPS is ₹3.80. The Pre-Issue P/E ratio is 23.80x, and the Post-Issue P/E ratio is 32.88x, which appears reasonable compared to the HVAC industry average P/E of 81x.

This implies that while the valuation isn't deeply discounted, it is competitively priced for the SME segment, especially when factoring in sectoral growth and the company's consistent performance.

Management Team

The company is led by:

• Mr. Ravalnath Gopinath Shende – Experienced in Sales, Manufacturing, Operations, and Vendor Development

• Mrs. Rajashri Ravalnath Shende – Brings strong leadership and interpersonal skills

• Ms. Devashree Vishwesh Nampurkar – Over 13 years of experience in Sales & Marketing

IPO GMP Trend

Conclusion and Recommendation

Given the strong financial performance, reasonable valuation, and positive market sentiment reflected through subscription data and GMP trends, Shree Refrigerations IPO appears to be a promising opportunity for listing gains.

However, as always, investment decisions should align with individual risk tolerance and portfolio goals. The IPO is being recommended for listing gains, but long-term sustainability will depend on continued growth, operational efficiency, and industry dynamics.

Disclaimer:
The above analysis is for educational and informational purposes only and does not constitute financial advice. Investing in the stock market involves risks. Please consult a certified financial advisor before making investment decisions. The IPO details are based on information available as of July 30, 2025, and are subject to change.

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The Current active IPO are B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics, Umiya Mobile, Repono.

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