Shree Refrigerations Limited (SRL), a prominent player in India’s HVAC manufacturing sector, has launched its highly anticipated ₹117.33 crore Initial Public Offering (IPO) on the BSE SME platform. This IPO represents a pivotal moment for the company and offers investors a chance to participate in its growth story. With the subscription window open from July 25 to July 29, 2025, and a tentative listing date of August 1, 2025, this guide delivers everything you need to know to make an informed decision.
About IPO Details
Shree Refrigerations IPO combines fresh capital infusion with an exit opportunity for existing shareholders:
- Fresh Issue: 75.61 lakh shares (₹94.51 Cr) for working capital and corporate purposes.
- Offer for Sale (OFS): 18.25 lakh shares (₹22.81 Cr) by promoters.
- Price Band: ₹119 to ₹125 per share.
- Face Value: ₹2 per share.
- Listing Exchange: BSE SME.
- Market Maker: Mansi Share & Stock Broking (4.7 lakh shares reserved).
Table: Shree Refrigerations IPO Structure
| Component | Shares | Amount (₹ Cr) |
|---|---|---|
| Total Issue Size | 93,86,000 | 117.33 |
| Fresh Issue (Ex-Mkt Maker) | 70,91,000 | 88.64 |
| Offer for Sale (OFS) | 18,25,000 | 22.81 |
| Market Maker Portion | 4,70,000 | 5.88 |
| Net Public Offer | 89,16,000 | 111.45 |
About the Company
Established in 2006, Shree Refrigerations designs and manufactures precision HVAC systems, including:
- Air/Water-cooled Condensing Units
- Industrial Chillers
- Marine HVAC Systems
- Spray Dampening Systems
- Custom Fabrication Services.
Key Strengths:
- Diversified Clientele: Automotive, Pharma, Printing, Marine, and Chemical industries.
- Quality Focus: ISO-certified manufacturing facility in Karad, Maharashtra.
- Technical Expertise: Strong R&D and engineering capabilities.
- Scalable Operations: 129 permanent + 165 contractual employees (as of May 31, 2025).
IPO GMP (Grey Market Premium)
As of July 25, 2025:
Live Grey Market Premium (GMP) Update (As of Today – 2025): ₹80 (64.00%)
- Live GMP: ₹80–₹95 (indicating strong investor interest).
- Estimated Listing Price: ₹205 (64% above the upper price band).
Note: GMP is volatile and subject to market sentiment. Check real-time updates closer to listing.
Note: GMP fluctuates daily. Check our IPO GMP Tracker for real-time updates.
Company Financial Data
Shree Refrigerations exhibits robust growth, with revenue up 22% and PAT up 17% in FY25.
Table: Financial Performance (₹ Crore)
| Year Ended | Assets | Revenue | PAT | EBITDA | Net Worth |
|---|---|---|---|---|---|
| Mar-2025 | 185.60 | 99.10 | 13.55 | 26.94 | 114.74 |
| Mar-2024 | 124.11 | 81.19 | 11.53 | 24.38 | 60.72 |
| Mar-2023 | 94.32 | 50.90 | 2.57 | 11.90 | 45.22 |
IPO Application & Lot Size
- Price Band: ₹119–₹125/share.
- Lot Size: 1,000 shares.
- Minimum Investment:
- Retail: ₹238,000 (2 lots = 2,000 shares).
- HNI: ₹375,000 (3 lots = 3,000 shares).
Reservation Quota
Table: Share Allocation
| Category | Shares | % of Offer |
|---|---|---|
| QIB | 44,55,000 | 47.46% |
| Retail (RII) | 31,22,000 | 33.26% |
| NII (HNI) | 13,39,000 | 14.27% |
| Market Maker | 4,70,000 | 5.01% |
| Total | 93,86,000 | 100.00% |
Promoter Holding
- Promoters: Mr. Ravalnath Shende, Mrs. Rajashri Shende, Mrs. Devashree Nampurkar.
- Pre-IPO Stake: 56.60%.
- Post-IPO Stake: 44.59% (equity dilution of 12.01%).
IPO Timeline
Table: Key Dates
| Event | Date |
|---|---|
| IPO Opens | July 25, 2025 |
| IPO Closes | July 29, 2025 |
| Allotment Finalization | July 30, 2025 |
| Refund Initiation | July 31, 2025 |
| Shares Credit to Demat | July 31, 2025 |
| Listing Date | August 1, 2025 |
Anchor Investor Details
- Anchor Bid Date: July 24, 2025.
- Amount Raised: ₹33.41 Cr.
- Shares Allotted: 26,73,000.
- Lock-in Period:
- 50%: 30 days (till Aug 29, 2025).
- 50%: 90 days (till Oct 28, 2025).
Key Performance Indicators (KPIs)
Table: Financial Ratios (FY24)
| KPI | Value |
|---|---|
| ROE | 15.44% |
| ROCE | 23.22% |
| Debt/Equity | 0.37 |
| PAT Margin | 13.72% |
| EBITDA Margin | 27.29% |
| Pre-IPO EPS | ₹5.25 |
| Pre-IPO P/E | 23.81x |
| Price/Book Value | 4.98x |
Company Contact Details
Shree Refrigerations Ltd.
Plot No. 131/1+2, Opp. MSEB Stores, Virwade Road,
Ogalewadi, Karad, Maharashtra 415105
Phone: 02164-272015
Email: Investor@shreeref.com
Website: www.shreeref.com
IPO Registrar
MUFG Intime India Private Limited (Link Intime)
Phone: +91-22-4918 6270
Email: shreerefrigerations.ipo@linkintime.co.in
Website: Link Intime
IPO Recommendation: Buy or Not?
Balanced View:
- Strengths: Strong sector tailwinds (HVAC growth), improving margins, low debt.
- Concerns: Aggressive P/E valuation vs. peers, SME market volatility.
- Verdict: A moderate-risk opportunity. Suitable for investors with:
- Long-term horizon (3–5 years).
- Appetite for SME segment volatility.
- Belief in industrial manufacturing growth.
RHP/DRHP
- DRHP Filed With: BSE SME.
- Key Documents:
- Shree Refrigerations IPO DRHP
- Shree Refrigerations IPO RHP
Always review RHP for complete disclosures and risk factors.
IPO Review: Pros & Cons
| Pros | Cons |
|---|---|
| ✅ Strong revenue & PAT growth (3-year CAGR) | ❌ High valuation (P/E 23.8x) |
| ✅ Debt-to-equity comfortable (0.37) | ❌ Post-IPO promoter holding dips to 44.6% |
| ✅ Niche in custom HVAC solutions | ❌ SME liquidity risks post-listing |
| ✅ Experienced management team | ❌ 70% IPO proceeds for working capital (not expansion) |
FAQs (10 Key Questions)
Q1. What is Shree Refrigerations IPO GMP today?
A: As of July 25, 2025, GMP is ₹20–₹25. Check live updates daily.
Q2. When is the allotment date?
A: July 30, 2025.
Q3. What is the lot size?
A: 1,000 shares. Retail min investment: ₹238,000.
Q4. Who are the promoters?
A: Ravalnath Shende, Rajashri Shende, and Devashree Nampurkar.
Q5. What is the post-IPO market cap?
A: ₹445.38 Cr at the upper price band (₹125/share).
Q6. How are IPO proceeds utilized?
A: ₹70 Cr for working capital; balance for corporate purposes.
Q7. What is the ROE and ROCE?
A: ROE: 15.44%; ROCE: 23.22% (FY24).
Q8. Is the IPO good for long-term?
A: Depends on execution scalability and sector growth. Medium-risk bet.
Q9. How to check allotment status?
A: Via registrar Link Intime’s website using PAN or application number.
Q10. When will shares be credited?
A: July 31, 2025.
Conclusion
Shree Refrigerations IPO taps into India’s booming HVAC market with solid financials and niche expertise. While the P/E valuation is steep, robust GMP signals market confidence. Retail investors should weigh the SME liquidity risks against long-term industrial growth potential. Always cross-check with RHP disclosures and consult a financial advisor.
