What Is the Fund Raise?
Ice Make Refrigeration has authorized the issuance of up to 23,67,573 fully paid-up equity shares with a face value of ₹10 each. These shares are priced at ₹802.51 per share, which includes a premium of ₹792.51. The total capital raised through this preferential issue on a private placement basis amounts to approximately ₹1,900,010,010.
The primary allottees include Galilei Holdings Co. Ltd. from Japan and two individual non-promoter investors.
Upon completion, these new shares will represent approximately 13.05% of the company post-issue share capital on a fully diluted basis, including existing employee stock options.
Strategic Rationale
The primary driver for this capital raise is the formation of a strategic partnership with Galilei Holdings to tap into high-growth hospitality and retail refrigeration segments. By establishing the Ice Make Horeca Private Limited joint venture, the company aims to manufacture advanced products like modular blast chillers and microcomputer-controlled cooling systems. This collaboration integrates Japanese technical expertise with domestic manufacturing capabilities.
The fundraise strengthens the balance sheet to support the company investment of ₹35.27 crore into the new venture, while securing a long-term strategic investor in Galilei Holdings.
Details of the Joint Venture
- The new entity will operate under the name Ice Make Horeca Private Limited with a 60% majority stake held by Galilei.
- Total initial investment in the JV is pegged at ₹88.19 crore, with Galilei contributing ₹52.92 crore.
- The business scope covers the manufacture, marketing, and distribution of commercial upright and table-type refrigerators.
- Specialized products including ice makers and blast chillers are part of the long-term production roadmap.
- Galilei receives board nomination rights and special governance rights as per the Shareholders Agreement.
Business and Financial Context
Founded in 1993, Ice Make Refrigeration is a prominent player in the Indian cooling solutions industry, operating across cold rooms, commercial, industrial, and transport refrigeration. For the trailing twelve months, the company reported operating revenue of ₹668.2 crore. While the recent quarterly revenue showed a robust year-on-year growth of 41.86%, the net profit margin stood at 8.36%.
The preferential issue price of ₹802.51 is positioned near the recent 30-day moving average, reflecting the strategic nature of the placement to attract international industrial partners for complex refrigeration tailored for the Hotel, Restaurant, and Cafe sector.
