Shree Refrigerations IPO

Incorporated in 2006, Shree Refrigerations Limited specializes in manufacturing HVAC systems such as air and water-cooled condensing units, chillers, spray dampening systems, and customized fabrication solutions. The company serves diverse industries including automotive, marine, print media, chemical, pharmaceutical, and general engineering. Its product offerings include chillers, marine HVAC systems, test equipment, and printing chillers, all designed to meet rigorous industry and client-specific standards.

Operating out of a fully equipped manufacturing facility in Karad, Maharashtra, Shree Refrigerations emphasizes quality through advanced machinery, testing, and handling processes. The company also provides a wide range of services, including HVAC system installation, plant repairs, and specialized fabrication processes such as CNC programming, material management, and painting. Additional products and services include cabin leakage testers, airflow measurement rigs, and a psychometric lab. As of May 31, 2025, the company employed 129 permanent and 165 contractual workers.

Shree Refrigerations IPO Strengths

• The company is a leading manufacturer of industrial chillers, HVAC systems, and specialized refrigeration equipment, serving diverse industries including printing, marine, and defence sectors.
• Shree Refrigerations has earned distinction for providing HVAC turnkey solutions to the Indian Navy and is one of the few engineering companies recognized and registered for defence manufacturing requirements.
• Shree Refrigerations operates sizable, well-equipped manufacturing units with up-to-date machinery, supporting high-quality production and capacity to meet large-scale industrial demands.
• The company offers one of the widest ranges of refrigeration and HVAC products in the industry, catering to standard as well as highly customized needs for industrial and defence clients.
• The management maintains a clear mission to combine technological excellence with nation-building, positioning the company as a reliable, innovative, and values-driven supplier within its sector.

Shree Refrigerations IPO Risks

• Shree Refrigerations operates at a moderate scale, with total operating income of ₹81.19 crore in FY24 and ₹99.10 crore on an annualized basis for FY25. This size may limit bargaining power with suppliers or customers and expose the business to greater impact from demand or order delays.
• The company’s working capital cycle is elongated, with an operating cycle of 317 days in FY24, mainly due to long collection periods and inventory holding requirements. Funds are frequently tied up in receivables and inventories, raising liquidity risks and dependence on short-term borrowings.
• Much of Shree Refrigerations’ revenue comes from tender-based contracts, particularly in the defence sector. This exposes the company to uncertainty in order inflows, aggressive competition, and margin pressure since contracts are often awarded to the lowest bidder.
• A high proportion of orders are from specialized sectors such as defence and marine, specifically for HVAC solutions for the Indian Navy. Any reduction in defence budgets, delay in government contracts, or regulatory changes could significantly affect revenue and growth.
• Shree Refrigerations is reliant on a limited group of suppliers for certain specialized components. Any disruption, delay, or cost escalation from these vendors may result in production setbacks, increased costs, or inability to meet project timelines.
• Business growth is tied closely to government regulations and defence sector procurement policies. Shifts in policy, delays in approvals, or adverse regulatory changes can create business uncertainty and impact the order pipeline.