Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Shree Refrigerations Ltd IPO (SHREEREF), ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
What is Shariah Compliance?
Shariah compliance refers to the adherence to Islamic law, which governs various aspects of life, including financial transactions. When it comes to investments, certain criteria must be met to ensure that they are permissible under Shariah law. For example, investments should avoid sectors related to alcohol, gambling, pork, and any form of interest (Riba), etc.
Analyzing Shree Refrigerations Ltd IPO (SHREEREF)
Company Name: Shree Refrigerations Ltd
Industry: Manufacturing- Industrial Equipment
Listing At: BSE SME
Overview From Company’s Website:
Our company is a leading manufacturer of refrigeration equipment that caters specifically to the Indian Navy, as well as produces high-quality chillers for the chemical and pharmaceutical sectors. We also specialize in value-added fabrication for engineering industries.
With 40+ years of experience and technical expertise, we have built a strong reputation for delivering reliable, efficient, and customized solutions to meet the unique demands of our clients.
For the Indian Navy, we understand the criticality of ensuring the proper functioning of refrigeration and air conditioning on naval vessels. Our refrigeration equipment is specifically designed and manufactured to withstand the challenging maritime environment while maintaining precise temperature control and durability.
In the chemical and pharmaceutical sectors, we recognize the essential role that temperature control plays in preserving the integrity of raw materials and finished products. Our chillers are designed with cutting-edge technology and advanced features to ensure optimal performance, energy efficiency, and compliance with strict regulatory standards.
Furthermore, our value-added fabrication services cater to the engineering industries, providing bespoke solutions for various fabrication needs. Our skilled team of engineers and technicians work closely with clients to understand their specific requirements and deliver precision-engineered components and structures that meet the highest quality standards.
At our company, we are committed to establishing long-term partnerships with our clients by providing them with reliable, innovative, and cost-effective solutions. Our dedication to excellence, attention to detail, and commitment to customer satisfaction have made us a trusted name in the industry.
Shariah Status
The IPO is Shariah Compliant, please see below image.
Additional Considerations:
When opting for Shariah-compliant investments, it is essential to regularly check the status in our App. This ensures that the evolving nature of businesses or other financial data does not compromise the compliance status of your investments.
IPO Timeline (Tentative Schedule)
| IPO Open Date | Fri, Jul 25, 2025 |
| IPO Close Date | Tue, Jul 29, 2025 |
| Tentative Allotment | Wed, Jul 30, 2025 |
| Initiation of Refunds | Thu, Jul 31, 2025 |
| Credit of Shares to Demat | Thu, Jul 31, 2025 |
| Tentative Listing Date | Fri, Aug 1, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 29, 2025 |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 2 | 2,000 | ₹2,50,000 |
| Individual investors (Retail) (Max) | 2 | 2,000 | ₹2,50,000 |
| S-HNI (Min) | 3 | 3,000 | ₹3,75,000 |
| S-HNI (Max) | 8 | 8,000 | ₹10,00,000 |
| B-HNI (Min) | 9 | 9,000 | ₹11,25,000 |
Financials
The company has shown consistent growth over the past three financial years. As of 31 March 2025, it reported total assets of ₹185.60 crore, revenue of ₹99.10 crore, and a profit after tax of ₹13.55 crore. Its EBITDA stood at ₹26.94 crore, with a net worth of ₹114.74 crore and reserves and surplus of ₹109.13 crore. In the previous year ending 31 March 2024, the company had assets of ₹124.11 crore, revenue of ₹81.19 crore, and profit after tax of ₹11.53 crore. EBITDA was ₹24.38 crore, net worth ₹60.72 crore, and reserves and surplus ₹55.82 crore. For the year ending 31 March 2023, it recorded assets of ₹94.32 crore, revenue of ₹50.90 crore, and profit after tax of ₹2.57 crore. The EBITDA was ₹11.90 crore, net worth was ₹45.22 crore, and reserves and surplus stood at ₹21.25 crore. This steady improvement across key financial metrics indicates a positive growth trajectory.
KPI
| KPI | Values |
|---|---|
| ROE | 15.44% |
| ROCE | 23.22% |
| Debt/Equity | 0.37 |
| RoNW | 15.44% |
| PAT Margin | 13.72% |
| EBITDA Margin | 27.29% |
| Price to Book Value | 4.98 |
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Shree Refrigerations Ltd IPO is currently ₹90, representing 72% premium over the issue price.
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.