Shree Refrigerations Limited is a company engaged in manufacturing chillers, refrigeration and air conditioning appliances, and other components for the Heating, Ventilation, Air Conditioning (HVAC) industry. The company offers an advanced range of systems and equipment, primarily serving various industries across the domestic market. Its products cater to sectors including Automotive, Marine, Print Media, Chemical, Pharmaceutical, and General Engineering.

IPO Details

Shree Refrigerations has launched a Book Built Issue IPO amounting to ₹117.33 crore, comprising a Fresh Issue of 75.61 lakh shares worth ₹94.51 crore and an Offer for Sale of 18.25 lakh shares worth ₹22.81 crore. The subscription period runs from July 25, 2025, to July 29, 2025. The allotment is expected to be finalized on or about July 30, 2025, with tentative listing on the BSE SME platform on August 1, 2025.

• Price Band: ₹119 to ₹125 per equity share

• Market Capitalisation: ₹445.38 crore at the upper price band

• Lot Size: 1,000 shares

• Minimum Investment: Individual investors must apply for at least 2 lots (2,000 shares), totaling ₹2,50,000

Lead Manager, Registrar, and Market Maker

• Book Running Lead Manager: NARNOLIA FINANCIAL SERVICES LIMITED

• Registrar: MUFG INTIME INDIA PRIVATE LIMITED

• Market Maker: Mansi Share and Stock Broking Private Limited

Subscription Status and Anchor Investors

As of 12:30 PM on July 28, 2025, the IPO was subscribed 8.93 times, indicating strong demand on the second day. The company raised ₹33.41 crore from anchor investors at ₹125 per share, allotting 26.73 lakh equity shares to anchor investors. This robust anchor subscription signals institutional confidence.

Grey Market Premium (GMP)

The Grey Market Premium of Shree Refrigerations IPO is ₹40, which is approximately a 32% premium over the upper price band, indicating expectations of strong listing gains. Investors should note that GMP is an unofficial indicator and should be considered cautiously.

About Shree Refrigerations

The company manufactures chillers, refrigeration and air conditioning products, and other HVAC components. Its products serve multiple industries including automotive, marine, print media, chemical, pharma, and general engineering sectors, making it a diversified supplier in the HVAC space.

The company is led by experienced promoters:

• Mr. Ravalnath Gopinath Shende (expertise in sales, manufacturing, operations, planning, finance, compressor manufacturing, vendor development)

• Mrs. Rajashri Ravalnath Shende (leadership, team building, interpersonal skills)

• Ms. Devashree Vishwesh Nampurkar (13 years in sales, marketing, business strategy development)

Financial Performance

• Revenue from operations (₹ lakh):

  • FY23: 5,090.46

  • FY24: 8,118.70

  • FY25: 9,909.53

• EBITDA (₹ lakh):

  • FY23: 1,222.47

  • FY24: 2,526.57

  • FY25: 2,731.22

• Profit After Tax (₹ lakh):

  • FY23: 257.40

  • FY24: 1,153.06

  • FY25: 1,354.66

The steady increase in revenue, EBITDA, and profits over three years reflects the company’s strong operational and financial growth.

Key Financial Metrics

• Pre-issue EPS: ₹5.25 (FY24)

• Post-issue EPS: ₹3.80 (FY24)

• Pre-issue P/E Ratio: 23.80x

• Post-issue P/E Ratio: 32.88x

• Industry P/E Ratio: 81x

• ROCE: 23.22%

• ROE: 15.44%

• RoNW: 15.44%

These financial ratios suggest that the IPO is fairly valued relative to industry standards.

Use of IPO Proceeds

The company plans to utilize net proceeds primarily for:

1. ₹70 crore for funding working capital requirements

2. General corporate purposes

Investment Outlook

With a diversified product range catering to multiple industries and backed by experienced management, Shree Refrigerations has shown consistent financial growth. The high subscription rate and Grey Market Premium indicate positive market sentiment. This IPO may be attractive to investors seeking exposure to the HVAC manufacturing sector with potential for listing gains.

How to Check Allotment Status

The IPO allotment status will be available on or after July 30, 2025, on the registrar’s website:

• Select Shree Refrigerations Limited IPO

• Enter your application number, PAN, or DP Client ID

• Submit to check allotment status

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice or an offer to buy or sell securities. Investors should conduct their own due diligence and consult financial advisors before making investment decisions. Investments in securities are subject to market risks.

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