Shree Refrigerations IPO Booked Over 20 Times; GMP Soars 72% At End Of Day 2

The initial public offering (IPO) of Shree Refrigerations witnessed strong demand on the second day of bidding on July 28. The BSE SME issue was booked 20.62 times till 5 p.m., as per the data from market tracking site Chittorgarh.

The IPO attracted bids for more than 12.86 crore shares against 62.42 lakh shares on offer.

Retail investors booked their quota 34.85 times. The Non-Institutional Investors’ (NIIs) segment was subscribed 11.88 times. Qualified Institutional Buyers quota was fully subscribed on Day 2, subscribing 2.25 times the number of shares offered.

Here's all you need to know about Shree Refrigerations IPO.

The grey market premium (GMP) for the Shree Refrigerations IPO stood at Rs 90 as of 5 p.m. on July 28, according to InvestorGain. The latest GMP indicates a listing price of Rs 215 apiece at a premium of 72% compared to the upper limit of the IPO price band. 

Note: GMP does not represent official data and is based on speculation.

The Shree Refrigerations IPO is a book-building issue of Rs 117.33 crore. It comprises a fresh issue of 75.61 lakh shares, worth Rs 94.51 crore, and an offer-for-sale (OFS) of 18.25 lakh shares, amounting to  Rs 22.81 crore.

To participate in the IPO subscription, retail investors need to bid for two lots comprising 2,000 shares, requiring an investment of Rs 2,38,000. High Net-Worth Individuals (HNIs) must bid for at least three lots, amounting to an investment of Rs 3,75,000.

The price band for the Shree Refrigerations IPO is set between Rs 119 and Rs 125 per share.

Investors can participate in the IPO from July 25 to July 29. The allotment of shares is proposed to be finalised on July 30. The company will transfer shares to the Demat accounts of successful bidders on July 31 and refunds for non-allottees will also be processed on the same day. 

Shares of Shree Refrigerations are proposed to be listed on the BSE SME platform on Aug. 1.  

Narnolia Financial Services Ltd. is the book-running lead manager of the Shree Refrigerations IPO. MUFG Intime India Pvt. is the registrar of the IPO. Mansi Share and Stock Broking Pvt. is the market maker for the issue. 

The company will use proceeds from the IPO to fund working capital requirements and for general corporate purposes. 

Shree Refrigerations manufactures refrigeration equipment, particularly for the Indian Navy. It also produces chillers for the chemical and pharmaceutical industries.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.