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ICE Make NSE SME IPO review (Apply)

Review By Dilip Davda on November 21, 2017

Ice Make Refrigeration Ltd. (IMRL) is a refrigeration equipment manufacturer, engaged in providing cooling solutions. Company provides cooling solutions for cooling systems and accessories used in industries such as dairy, ice-cream, food processing, agriculture, pharmaceuticals, cold chains, logistics, hospital, hospitality and retail, among others. It classifies its business into 4 verticals: (i) Cold Room (ii) Commercial Refrigeration (iii) Industrial Refrigeration and (iv) Transport Refrigeration. IMRL operates its business verticals under the brand of “Ice Make”.

Top 5 products of the company are (i) Cold Room (ii) Commercial Freezer (iii) Chiller (iv) Refrigerated Vehicle and (v) Ice Cream Hardener. In December 2016, it acquired ‘Bharat Refrigerations Private Limited’, a company based in Chennai, engaged in similar business, which is now a wholly owned subsidiary. Bharat Refrigerations Private Limited is present in the above business verticals through the brands named ‘Bharat’ and ‘Trans Freez’. IMRL’s dealers and associates are present in the cities of Bikaner, Cochin, Cuttack, Goa, Hubli, Jodhpur, Kolhapur, Kolkata, Nagpur, Patna, Pune, Pondicherry, Trivandrum, Kathmandu and Colombo. Its customers include leading and reputed names across each industry. To name some of them are Amul, Havmor, Vadilal, The Grand Bhagwati, Thirumala, Sankalp, Vimal Dairy, Scoops, Himalayan, Kitchen Express, Urmin, Haldiram’s Prabhuji etc. etc...

To part finance its setting p of coil manufacturing facility, upgrading existing facilities, constructing administrative office, brand building, investment in subsidiary, working capital and general corpus fund needs, IMRL is coming out with a maiden IPO of 4160000 equity shares of Rs. 10 each via book-building route with a price band of Rs. 55-57 per share to mobilize Rs. 22.88 cr. to Rs. 23.71 cr. (based on lower and upper price bands). Issue opens for subscription on 28.11.17 and will close on 30.11.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Vivro Financial Services Pvt. Ltd. and Link Intime India Pvt. Ltd. is the registrar to the issue. Issue constitutes 26.54% of the post issue paid up capital of the company. Having raised initial equity at par in the year 2009 and 2010, it raised further equity at a fixed price of Rs. 75 per share between October 2010 and January 2014. It has also issued bonus shares in the ratio of 4 for 1 in March 2016 and 3 for 5 in June 2017. Post issue, its current paid up equity capital of Rs. 11.51 crore will stand enhanced to Rs. 15.67 crore. Cost of acquisition of shares by promoters ranges from Rs. 3.27 to Rs. 3.76 per share.

On performance front, while on standalone basis it reported continuous growth in top and bottom lines that went up from Rs. 39.26 crore and Rs. 0.89 crore in FY14 to Rs. 87.88 cr. and Rs. 5.11 cr. in FY17. For Q1 of current fiscal, it has posted net profit of Rs. 1.47 crore on a turnover of Rs. 23.05 crore. On consolidated basis it has posted net profit of Rs. 5.09 crore on a turnover of Rs. 88.24 crore for FY17 and net profit of Rs. 1.41 crore on a turnover of Rs. 23.08 crore. It has reported an average EPS of Rs. 3.12 and RoNW of 26.99% for last three fiscals on standalone basis on an equity base of Rs. 11.51 crore. On consolidated basis it has posted an EPS of Rs. 4.42 for FY17 and RoNW of 32.91%. If we annualize latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 15. Issue is priced at a P/BV of around 3.88 based on NAV as on 30.06.17. As per offer documents, it has no listed peer to compare with. Thus it enjoys virtual monopoly with creamy list of customers. From FY13 to FY17, it has reported CAGR of 21% in top line, 40% in EBIDTA and 58% in PAT. Management is confident of maintaining its role as “Trusted Cooling Partners” with improved performance post coil plant going on stream.

On merchant banker’s front, this is the first mandate for SME platform from its stable. It brought a main board IPO of Capacit’e in Sept. 2017 that opened at a premium to offer price on the day of listing.

Conclusion: Considering the status enjoyed by this company among creamy customers and proven track record, investors may consider investment for medium to long term. It is set to create fancy post listing as the first mover in the segment. (Subscribe).

Conclusion / Investment Strategy

Considering the status enjoyed by this company among creamy customers and proven track record, investors may consider investment for medium to long term. It is set to create fancy post listing as the first mover in the segment. (Subscribe).

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on November 21, 2017

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.

About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

(Dilip Davda -SEBI registered Research Analyst-Mumbai,

Registration no. INH000003127 (Perpetual)

Email id: ).


  1. 1. Why ICE Make IPO?

    The initial public offer (IPO) of ICE Make Refrigeration Ltd offers an early investment opportunity in ICE Make Refrigeration Ltd. A stock market investor can buy ICE Make IPO shares by applying in IPO before ICE Make Refrigeration Ltd shares get listed at the stock exchanges. An investor could invest in ICE Make IPO for short term listing gain or a long term.

  2. 2. How is ICE Make IPO?

    Read the ICE Make IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. ICE Make IPO what should investors do?

    ICE Make IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the ICE Make IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is ICE Make IPO good?

    Our recommendation for ICE Make IPO is to subscribe.

  5. 5. Is ICE Make IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the ICE Make IPO.

  6. 6. When will ICE Make IPO allotment status?

    The ICE Make IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit ICE Make IPO allotment status to check.

  7. 7. When will ICE Make IPO list?

    The ICE Make IPO will list on Friday, December 8, 2017, at NSE SME.


2. Technical Bull     Link|November 29, 2017 12:48:21 PM
Hello Sir,
I always read ur reviews before investments. Thank u.
However I have one query, where can we see company''s quarterly results after getting listed?, Moneycontrol, economic times are not showing. Also, most of the companies does not post on their official web page.
1. AVANI KUMAR JAIN     Link|November 22, 2017 11:14:40 AM
Good Review, Seems good IPO from SME segment . With logistic business now getting infra status , this company has got good potential to reward investors in short and long term