Shree Refrigerations IPO

About Shree Refrigerations IPO

Shree Refrigerations Limited IPO is an IPO of up to 93,59,200 equity shares. It consists of an offer for sale of up to 18,83,380 equity shares and a fresh issue of up to 74,75,820 equity shares. The shares will be allotted on TBA. The credit of shares to the Demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Shree Refrigerations IPO

• Funding the working capital requirements of the company.
• General corporate purposes.

Industry Outlook

The Heating, Ventilation, and Air Conditioning (HVAC) sector in India is witnessing significant growth, driven by various factors such as rapid urbanisation, increasing disposable income, and changing climatic conditions. Several government initiatives, such as ‘Make in India’ – Atmanirbhar Bharat, Production Linked Incentive (PLI) schemes, financial incentives, and the commitment to becoming carbon neutral by 2070, are prime contributors to the growth of an energy-efficient HVAC market. Projected to reach a market size of $3,000 crores by 2030 and growing at a CAGR of 15.8%, the Indian subcontinent has become a fertile ground for both local and international HVAC manufacturers. Marine HVAC systems are in high demand due to the expanding global shipping sector and the rising need for shipping services. Urbanisation, increased worldwide trade, and the growing demand for specialty boats such as cruise ships and offshore support vessels are the main drivers of this growth. The global Marine HVAC market was valued at USD 180 crores in 2024 and is expected to reach USD 270 crores by 2033, at a CAGR of 4.5% during the forecast period from 2024 to 2033.

Company Information

Shree Refrigerations Limited is engaged in the business of manufacturing chillers, refrigeration, and air conditioning appliances, as well as other parts of the Heating, Ventilation, and Air Conditioning (HVAC) industry. It offers a range of advanced systems and equipment to industries, majorly in the domestic market. Their collection of products serves multiple industries, including automotive, marine, print media, chemical, pharma, and general engineering sectors. They are also actively involved in the manufacturing of marine chillers, holding approved supplier registrations from various professional directorates of the Indian Navy (Directorate of Electrical Engineering, backed by the Directorate of Quality Assurance – Warship Projects). In the automotive industry, their products help maintain optimal temperature control in various systems. In the marine sector, they ensure crew comfort and operational efficiency on ships and vessels, and also support maintaining the electronic warfare systems at optimal operating temperatures. Their systems also play a vital role in maintaining environmental conditions in the print media, chemical, and pharmaceutical industries, where temperature regulation is crucial for product quality and safety.

Risks of Shree Refrigerations IPO

• Heavy dependence on defence contracts.
• High working capital intensity.
• Dependence on a few key suppliers for critical materials.

Anchor Investor Information

The Anchor Investor Bidding Date shall be one working day prior to the Issue Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Narnolia Financial Services Limited

Registrar for the IPO is Link Intime India Private Limited

Business Model

The company earns its revenue through the following sources:

• Manufacturing chillers, refrigeration and air conditioning appliances, and other parts of the Heating, Ventilation, and Air Conditioning (HVAC) industry, offering an array of advanced systems and equipment majorly to the domestic market. Their collection of products serves multiple industries, including automotive, marine, print media, chemical, pharmaceutical, and general engineering sectors.

• Manufacturing marine chillers, with approved supplier registrations from various professional directorates of the Indian Navy (Directorate of Electrical Engineering, backed by the Directorate of Quality Assurance – Warship Projects).

Company Growth Trajectory

Revenue from operations for the period that ended June 30, 2024, stood at ₹23.51 crores, which is 99.75% of the total income. Other income for the period ended June 30, 2024, stood at ₹0.06 crores, which is 0.25% of the total income. Restated profit after tax for the period that ended June 30, 2024, stood at ₹3.56 crores, which is 15.09% of the total income.

Company Market Position

They compete with both domestic and international companies, primarily on the basis of product quality, technology, cost, delivery, and service. Their ability to offer a wide range of products and comprehensive solutions tailored to customer needs sets them apart. Key competitive factors include product features, design, quality, price, delivery, customer experience, time to market, after sales support, and customer-producer relationships.

How To Check Allotment Status of Shree Refrigerations IPO?

You can check the allotment status of shares either on the website of the Bomaby Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited.

To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Shree Refrigerations Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Link Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Shree Refrigerations Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Dr Agarwal’s Health Care IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI