Shree Refrigerations
- Shree Refrigerations is coming out with an initial public offering (IPO) of 93,86,000 equity shares in a price band Rs 119-125 per equity share.
- The issue will open on July 25, 2025 and will close on July 29, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 2 and is priced 59.50 times of its face value on the lower side and 62.50 times on the higher side.
- Book running lead manager to the issue is Narnolia Financial Services.
- Compliance Officer for the issue is Ashvini Ghanashyam Godbole.
Profile of the company
Shree Refrigerations is engaged in the business of manufacturing Chillers, refrigeration and air conditioning appliances and other parts of Heating, Ventilation, Air Conditioning (HVAC) Industry, offering array of advanced systems and equipment to industries majorly in domestic market. Its collection of products serves multiple industries including Automotive, Marine, Print Media, Chemical, Pharma and General engineering sectors. It is also actively involved in the manufacturing of marine chillers, having approved supplier registrations from various professional directorates of Indian Navy (Directorate of Electrical Engineering and backed by Directorate of Quality Assurance - Warship Projects).
In the automotive industry, its products help to maintaining optimal temperature control in various systems. In the marine sector, they ensure crew comfort and operational efficiency on ships and marines and also support maintaining the electronic warfare systems to be at optimal operating temperature. Its 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, safety.
Its product range includes Chillers, Test Equipment, Marine HVAC & R Systems, and Printing Chillers, among others. It also provides value-added fabrication services, offering customized solutions to the engineering industry. Its team works closely with clients to develop engineered components that meet the quality standards. With its in-house design capabilities and technical collaborations with entities, it leverages its knowledge in refrigeration and HVAC systems to deliver state-of-the-art solutions. It has been accredited as an ISO 9001:2015 certified company. It prioritizes the implementation and maintenance of a robust Quality Management System, ensuring its products adhere to the quality and reliability standards.
Proceed is being used for:
- Funding the working capital requirements of the company
- General corporate purposes
Industry Overview
The global HVAC systems market was estimated at $241.52 billion in 2024 and is projected to reach $445.73 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 7.0% from 2025 to 2033. This growth is propelled by energy efficiency regulations and government incentives for smart and sustainable HVAC systems. Technological advancements, including IoT-enabled monitoring, AI-driven optimization, and integration with renewable energy systems, are further encouraging system upgrades and new installations. Asia Pacific dominated the global HVAC systems market with the largest revenue share of 46.8% in 2024. This is attributed to rapid urbanization, population growth, and expanding middle-class housing, particularly in China, India, and Southeast Asia. Rising temperatures and increasing adoption of air conditioning in residential and institutional settings are driving volume sales. The market in India, specifically, is projected to expand at a significant CAGR of 8.2% over the forecast period.
The Indian HVAC market is segmented by product type into heating equipment, ventilation equipment, and air conditioning equipment. This segmentation reflects the diverse climatic conditions across India and the varying demands for temperature control and air quality solutions in different applications. The growth of each product segment is influenced by factors such as urbanization, industrialization, energy efficiency regulations, and consumer preferences. The Indian HVAC sector is experiencing significant expansion, fueled by rapid urbanization, increasing disposable incomes, and evolving climatic conditions. Government initiatives like 'Make in India' and 'Atmanirbhar Bharat', along with Production Linked Incentive (PLI) schemes, are contributing to the growth of an energy-efficient HVAC market. The HVAC market, along with intelligent building solutions, is projected to reach Rs 1,78,000 crore (or $21.5 billion) in India by 2028. The India HVAC Market reached $9.1 billion in 2023 and has a projected CAGR of 14.5% during the forecast period of 2025-2029.
Meanwhile, the Indian marine HVAC market is a growing segment within the broader marine industry, influenced by the country's extensive coastline and increasing maritime activities. The Marine HVAC market in India was valued at $862.77 million in 2023 and the total Marine HVAC revenue is expected to grow at a CAGR of 3.45% from 2024 to 2030, reaching nearly $1093.98 million. India is recognized as the fastest-growing market in the Asia- Pacific region for marine HVAC. The global HVAC, marine HVAC, and shipping industries face unprecedented challenges and opportunities in 2025. Global supply chain disruptions, changing carrier alliances, and geopolitical conflicts continue to strain operations, while workforce shortages and rising equipment costs create additional complexity. Going forward, Companies that embrace digital transformation, invest in skilled workforce development, and prioritize customer service excellence will thrive in this evolving landscape.
Pros and strengths
Customization of products: The company provides customized products to meet the specific needs of its customers. Its engineering team design AC plants, HVAC solutions, electrical control panels, and printing chillers. Their experience allows it to provide personalized solutions that match each project's requirements. This customization sets it apart and shows its commitment to meeting its clients' unique needs.
Wide range of products: The company offers a wide range of products to meet the diverse needs of its customers across various industries. Its product line includes chillers, marine chillers and refrigeration plants, and their components, condensing units, test equipment, HVAC & R systems, as well as printing chillers. It manufactures high-quality refrigeration equipment for the Indian Navy and produce chillers for the chemical and pharmaceutical sectors. Additionally, it is also involved in value-added fabrication for engineering industries. By offering a wide range of products, it creates an economic buffer and consistently generate returns.
Quality standards and ISO certified organization: The company’s strength lies in delivering quality services to its clients. It is certified as an ISO 9001:2015 organization and have further certifications from the Directorate of Quality Assurance (Warship Project) and the Directorate of Electrical Engineering, Ministry of Defence (Navy), for quality product manufacturing. Its products undergo 100% rigorous testing in its fully equipped QA laboratory, matching global standards. It ensures quality in design, engineering, and manufacturing, adhere to strict business principles, and comply with all statutory and voluntary requirements, ensuring customer satisfaction. Its quality departments conduct thorough testing following Customer Approved Testing Protocol.
Risks and concerns
Major revenue comes from limited clients: The company has garnered 91.64%, 95.71% and 89.69% of its total revenue from top 10 clients in FY25, FY24 and FY23 respectively. As its business is currently concentrated among relatively few significant customers, it may experience reduction in cash flow and liquidity and its business would be negatively affected if it loses one or more of its major customers or if the amount of business from one or more of them is significantly reduced for any reason, including as a result of a dispute with or disqualification by a major customer.
Procure major raw material from limited suppliers: The company has procured 51.79%, 69.15% and 81.17% of its raw material from top 10 suppliers in FY25, FY24 and FY23 respectively. It cannot assure that it will not face any such situations in the future, or the procurement of raw material will be on commercially viable terms. Furthermore, any dispute with any of the suppliers may damage its relationship with existing and potential suppliers, and in any such event its operations will be adversely affected. Further it will also affect its profitability and reputation in the market.
Top 3 states contribute major revenue: The company operates its business operations from its registered office situated in Karad, Maharashtra. However, its business operations span various regions across India. The company garnered significant revenue from top three states i.e. Maharashtra, Uttar Pradesh and Goa. Any factors relating to political and geographical changes, growing competition and any change in demand may adversely affect its business. It cannot assure that it shall generate the same quantum of business, or any business at all, from these states, and loss of business from one or more of them may adversely affect its revenues and profitability.
Outlook
Shree Refrigerations is engaged in the manufacturing of HVAC systems, including air and water-cooled condensing units, chillers, and spray dampening systems. The company offers chillers, test equipment, marine HVAC systems, and printing chillers, along with customized fabrication services, collaborating with clients to develop engineered components that meet quality standards. The company has wide range of products. It has a strong leadership and experienced management. On the concern side, the company depends on a limited number of customers for a significant portion of its revenues. The loss of a major customer or significant reduction in demand from any of its major customers may adversely affect its business, financial condition, results of operations and prospects. Moreover, its top 10 suppliers contribute a significant portion of its raw material and any dispute with one or more of them may adversely affect its business operations.
The company is coming out with a maiden IPO of 93,86,000 equity shares of Rs 2 each. The issue has been offered in a price band of Rs 119-125 per equity share. The aggregate size of the offer is around Rs 111.69 crore to Rs 117.33 crore based on lower and upper price band respectively. On performance front, the company has reported 22.94% rise in revenue from operations at Rs 9872.70 lakh in FY25 as compared to Rs 8030.55 lakh in FY24. Moreover, the company’s net profit surged 17.48% to Rs 1354.66 lakh in FY25 as compared to Rs 1153.06 lakh in FY24.
The company is planning to use its manufacturing and quality control strengths to grow its product range. It aims to improve its capabilities to produce a mix of new and existing products. This will help it to get more orders from its current and new customers. Its goal is to create, produce, and deliver these products according to customer needs, leading to more growth and profits. Good relationships with its suppliers and customers are essential for the company's growth. Its dedicated and timely delivery of products has helped it to build strong relationships with its existing customers over the years. Establishing strong relationships with suppliers is key to improving supply chain performance, reducing costs, and enabling its business to grow and develop.
