Shree Refrigerations IPO: Unlocking Investment Potential in HVAC

Dive into the details of the upcoming SME IPO from Shree Refrigerations Limited, a prominent player in the industrial HVAC sector. Discover key dates, financial performance, and what this opportunity could mean for your portfolio.

About Shree Refrigerations Ltd.: Pioneering HVAC Solutions

Established in 2006, Shree Refrigerations Limited has carved a niche for itself in the manufacturing of advanced HVAC (Heating, Ventilation, and Air Conditioning) systems. Their comprehensive product portfolio includes air and water-cooled condensing units, high-performance chillers, and specialized spray dampening systems. The company's expertise serves a diverse clientele across critical sectors such as automotive, marine, print media, chemical, pharmaceutical, and general engineering.

With a robust manufacturing facility situated in Karad, Maharashtra, Shree Refrigerations is committed to delivering products that meet stringent quality standards and client specifications. Beyond standard offerings, they excel in providing bespoke fabrication services, working hand-in-hand with clients to develop custom-engineered components tailored to unique industrial requirements.

Key Offerings & Core Strengths:

Diverse Product Range: From industrial chillers to specialized test equipment and marine HVAC systems, catering to varied needs.
Comprehensive Services: Including HVAC system installation, plant repairs, and end-to-end customized fabrication processes.
Quality Assurance: An ISO-certified organization, underlining its commitment to international quality benchmarks.
Client-Centric Customization: A strong emphasis on tailoring solutions, ensuring precise alignment with client needs.
Experienced Leadership: Guided by a seasoned management team, providing strategic direction and operational efficiency.

Shree Refrigerations IPO: Essential Offering Insights

This upcoming SME IPO presents an opportunity for investors to engage with a company poised for growth within the industrial cooling and heating solutions market. Here's a concise overview of the key offering details:

Aspect	Detail
Issue Type	Bookbuilding SME IPO
Total Issue Size	93.86 Lakh Equity Shares (aggregating ₹117.33 Crores)
Fresh Issue Component	75.61 Lakh Shares (₹94.51 Crores)
Offer for Sale (OFS) Component	18.25 Lakh Shares (₹22.81 Crores)
Face Value Per Share	₹2
Price Band Per Share	₹119 to ₹125
Listing Exchange	BSE SME
Estimated Post-IPO Market Cap	₹445.38 Crores (approx.)

IPO Timeline: Important Dates for Investors

Keep track of the key dates associated with the Shree Refrigerations IPO to ensure you don't miss out on any crucial steps:

IPO Open July 25, 2025

IPO Close July 29, 2025

Allotment Finalized July 30, 2025

Shares Credited / Refunds July 31, 2025

Tentative Listing Date August 1, 2025

*Note: These dates are tentative and may be subject to change by the company or regulatory authorities.

Investment Tiers: Lot Sizes and Application Specifics

Prospective investors should be aware of the minimum application requirements and lot sizes. The IPO is structured to accommodate various investor categories:

Category	Minimum Lots	Minimum Shares	Minimum Investment (₹)	Maximum Investment (₹)
Individual Investor (Retail)	2	2,000	₹2,50,000	₹2,50,000
Small HNI (sNII)	3	3,000	₹3,75,000	₹10,00,000 (8 lots)
Big HNI (bNII)	9	9,000	₹11,25,000	No Upper Limit

*Please note that bidding at the cut-off price is generally not allowed for categories other than retail individual investors in book-building IPOs.

Share Allocation Breakdown:

The total issue size is carefully distributed among different investor categories, ensuring broad participation:

Investor Category	Shares Offered	Percentage (%)
Market Maker	4,70,000	5.01%
Qualified Institutional Buyers (QIB)	44,55,000	47.46%
- Anchor Investors	26,73,000	28.48%
- QIB (Excluding Anchor)	17,82,000	18.99%
Non-Institutional Investors (NII)	13,39,000	14.27%
Retail Individual Investors (RII)	31,22,000	33.26%
Total Shares Offered	93,86,000	100.00%

Anchor Investor Participation:

In a positive sign for the IPO, Shree Refrigerations Ltd. successfully secured ₹33.41 crore from anchor investors on July 24, 2025. Anchor investors, typically large institutional players, commit capital prior to the public opening, often indicating confidence in the company's prospects. Their shares are subject to a lock-in period, with 50% released after 30 days (August 29, 2025) and the remainder after 90 days (October 28, 2025).

Financial Performance: A Trajectory of Growth

Shree Refrigerations Ltd. has demonstrated a robust financial performance over the last three fiscal years, reflecting its operational efficiency and market expansion. Below is a summary of their restated consolidated financials:

Financials (₹ Crores)	FY 2023	FY 2024	FY 2025
Revenue	50.90	81.19	99.10
Profit After Tax (PAT)	2.57	11.53	13.55
Total Assets	94.32	124.11	185.60
EBITDA	11.90	24.38	26.94
Net Worth	45.22	60.72	114.74
Total Borrowing	32.07	36.80	39.73

The company shows strong financial momentum, with a commendable 22% increase in revenue and a 17% growth in profit after tax (PAT) from FY 2024 to FY 2025.

Key Performance Indicators (KPIs - As of March 31, 2024):

Return on Equity (ROE): 15.44%
Return on Capital Employed (ROCE): 23.22%
Debt/Equity Ratio: 0.37
PAT Margin: 13.72%
EBITDA Margin: 27.29%
Price to Book Value: 4.98

Valuation Snapshot:

Based on the latest available financial data (as of March 31, 2025, and pre-issue shareholding), the company's valuation metrics are as follows:

Pre-IPO Earnings Per Share (EPS): ₹5.25
Price-to-Earnings (P/E) Ratio: 23.81x

Meet the Visionaries: Company Promoters

The foundation and strategic direction of Shree Refrigerations Ltd. are guided by its dedicated promoters: Mr. Ravalnath Gopinath Shende, Mrs. Rajashri Ravalnath Shende, and Mrs. Devashree Vishwesh Nampurkar. Their collective expertise and commitment are pivotal to the company's continued success and expansion in the HVAC industry.

Promoter Shareholding Dynamics:

The promoter group's stake in the company will see a slight adjustment post-IPO, reflecting the dilution from the fresh issue of shares:

Pre-Issue Promoter Shareholding: 56.6%
Post-Issue Promoter Shareholding: 44.59%

Purpose of the Public Offering

Shree Refrigerations Ltd. plans to strategically deploy the net proceeds generated from this public issue to bolster its financial position and support future growth:

Funding Working Capital Requirements: A substantial portion, amounting to ₹70.00 Crores, is earmarked to enhance the company's working capital, ensuring smooth operations and supporting scaling initiatives.
General Corporate Purposes: The remaining funds will be utilized for general corporate needs, providing flexibility for strategic investments, expansion plans, and other business exigencies.

Strategic Analysis: Unpacking Shree Refrigerations (SWOT)

To provide a holistic view, let's examine the internal and external factors that could shape Shree Refrigerations Ltd.'s journey:

Category	Analysis Points
Strengths	Proven track record in manufacturing customized, high-quality HVAC systems. ISO certification reinforces commitment to global standards and product reliability. Strategic collaborations and technology adoption enhance product innovation and market competitiveness. Diversified customer base across critical industrial sectors minimizes dependency. Consistent and healthy financial growth demonstrating operational efficiency. Experienced promoters and a strong management team offer stable leadership.
Weaknesses	Significant reliance on specific industrial segments, making the company susceptible to sector-specific downturns. SME IPOs typically have higher minimum investment requirements, potentially limiting retail investor participation. A considerable portion of the workforce comprises contractual employees, which might introduce labor management complexities. Maintaining technological edge requires continuous R&D investment in a dynamic industry.
Opportunities	Booming industrial and infrastructure development in India fuels demand for advanced HVAC systems. Growing global emphasis on energy-efficient and eco-friendly HVAC solutions offers new product development avenues. Potential for geographical expansion into new domestic or international markets. Strategic alliances could enhance production capabilities or broaden market reach. Utilization of IPO proceeds for working capital can significantly boost operational scaling and efficiency.
Threats	Intense competition from both established market leaders and emerging players in the HVAC sector. Fluctuations in the prices of key raw materials (e.g., steel, copper) could impact profitability margins. Economic slowdowns or industrial contractions could lead to reduced demand for the company's products. Adverse changes in government regulations, environmental policies, or trade policies. Rapid technological shifts in HVAC may render existing solutions less competitive if not adapted quickly.

Connect with Shree Refrigerations & IPO Registrar

For direct inquiries regarding the company or specific details about the IPO application and allotment process, here are the relevant contact details:

Shree Refrigerations Ltd. Contact:

Address: Plot. No. 131/1+2, Opp. MSEB Stores, Virwade Road, Ogalewadi, Karad, Maharashtra, 415105
Phone: 02164-272015
Email: Investor@shreeref.com
Website: http://www.shreeref.com/

IPO Registrar Details:

The registrar is crucial for managing the IPO application process, allotment, and ensuring shares are credited to successful applicants.

Registrar: MUFG Intime India Private Limited (Link Intime)
Phone: +91-22-4918 6270
Email: shreerefrigerations.ipo@linkintime.co.in
Website: https://linkintime.co.in/Initial_Offer/public-issues.html

Final Thoughts: Is Shree Refrigerations IPO a Fit for Your Portfolio?

Shree Refrigerations Ltd. stands as a well-established entity in India's industrial HVAC sector, backed by consistent financial performance and a clear strategic vision for growth. This SME IPO aims to further strengthen its operational capabilities and market presence, presenting an intriguing opportunity for investors.

Considering any investment, particularly in the SME segment, requires careful evaluation of the company's fundamentals, market dynamics, and your personal investment objectives and risk appetite. Understanding the company's competitive strengths and potential challenges, as highlighted in our analysis, is key to making a well-informed decision.

The Shree Refrigerations IPO could be a noteworthy consideration for those looking to diversify into the industrial manufacturing space. Stay updated on the subscription status and other developments to assess its potential contribution to your investment journey.