Shree Refrigerations shares rally 19% on securing ₹106 crore order

Shree Refrigerations shares rose 19 per cent after it won an order from Hindustan Shipyard for five Fleet Support Ships supply.

Shares of Shree Refrigerations rose over 19 per cent on Monday after it won an order worth ₹106.6 crore from Hindustan Shipyard Ltd. for the supply of five Fleet Support Ships. 

 

The small-cap company's stock rose as much as 19.2 per cent during the day to hit a record high of ₹214.8 per share, the steepest intraday rise since its listing earlier this month. The stock pared gains to trade 16.5 per cent higher at ₹209.9 apiece, compared to a 0.28 per cent advance in Nifty 50 as of 10:58 AM. 

 

Shares of the company rose for the second day and have risen over 20 per cent since its listing on August 1. Shree Refrigerations has a total market capitalisation of ₹734.52 crore.  

 

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Shree Refrigerations secures ₹106.6 crore order

The company received an order worth ₹106.62 crore from Hindustan Shipyard, a Government of India undertaking under the Ministry of Defence.

 

The contract involves the supply and installation of HVAC systems for five Fleet Support Ships, in line with the Statement of Technical Requirements (SOTR). The delivery is scheduled to be completed by March 31, 2028. The company clarified that neither its promoters nor group companies have any interest in Hindustan Shipyard and that the transaction does not fall under related-party dealings. 

 

Shree Refrigerations IPO details

Shree Refrigerations IPO comprises a fresh issue of 7.56 million equity shares worth ₹94.51 crore, and an Offer for Sale (OFS) of 1.82 million shares aggregating to ₹22.81 crore. Through the OFS, Maharashtra Defence and Aerospace Venture Fund, via its investment manager IDBI Capital Markets & Securities Limited, is offloading its stake.

 

Shree Refrigerations proposes to use the proceeds from the fresh issue to fund its working capital requirements and for general corporate purposes.

 

Shree Refrigerations is engaged in the business of manufacturing chillers, refrigeration and air conditioning appliances, and other components of the Heating, Ventilation, and Air Conditioning (HVAC) industry.

 

Shree Refrigerations is also actively involved in the manufacturing of marine chillers and holds approved supplier registrations from several directorates of the Indian Navy, including the Directorate of Electrical Engineering, and is backed by the Directorate of Quality Assurance – Warship Projects.