Japanese Company to Invest Rs 180 Crore in This Multibagger Small-Cap Industrial Products Company; Check Details

On Monday, Indian equity benchmark indices ended higher, with the benchmark Nifty 50 index rising 13.15 points, or 0.05 per cent, to 24,583.80. Amid the positive market movement, Ice Make Refrigeration share price declined 0.34 per cent to Rs 817.45, after the company announced definitive agreements with Japan-listed Galilei Holdings Co. Ltd for a strategic investment and joint venture.

Japanese Company to Invest Rs 180 Crore

Ice Make Refrigeration has entered into a share subscription agreement with Galilei Holdings Co. Ltd, a Japanese company listed on the Tokyo Stock Exchange, under which Galilei will subscribe to equity shares of the company through a preferential issue for approximately Rs 180 crore. The company will also raise an additional Rs 10 crore from other investors through a preferential issue.

The proposed fund raise is aimed at supporting the company's long-term growth strategy. Ice Make plans to utilise the proceeds towards capacity expansion, modernisation of existing operations and scaling integrated solutions across the refrigeration and cold room value chain.

Proposed Joint Venture with Galilei

Alongside the fund raise, Ice Make Refrigeration has entered into a joint venture agreement with Galilei for establishing a newly incorporated company. Under the proposed structure, Galilei will hold a 60 per cent stake, while Ice Make will hold the remaining 40 per cent.

The joint venture will focus on the manufacturing, assembling, distribution, marketing and sale of commercial upright-type refrigerators and commercial table-type refrigerators, along with their derivatives and upgrades.
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Funds to Support Expansion and Debt Reduction

Ice Make said the proposed capital raise will also be used to evaluate select inorganic growth opportunities, including potential acquisitions in the refrigeration, cold chain and allied ecosystems. A portion of the funds will be invested in the proposed joint venture with Galilei.

The company also plans to use part of the proceeds towards completing its new corporate office, Centre of Excellence and development and testing laboratory. Additionally, the fund raise will facilitate the repayment or prepayment of certain existing borrowings, which the company said would strengthen its balance sheet and improve financial flexibility.

Transaction Subject to Approvals

The proposed transaction remains subject to shareholder approval, in-principle approval from the stock exchanges and customary closing conditions.

About Ice Make Refrigeration

Ice Make Refrigeration Ltd is engaged in the refrigeration and cold-chain solutions business. The company focuses on providing refrigeration and cold-room solutions across different industry segments and is looking to expand its capabilities across the broader refrigeration and cold-chain value chain.

The company is also focusing on capacity expansion, modernisation, integrated solutions and technological development. As part of its growth strategy, Ice Make plans to strengthen its operations through investments in its new corporate office, Centre of Excellence and development and testing laboratory.

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Disclaimer: The article is for informational purposes only and not investment advice.