Ice Make signs JV deal with Galilei for ₹1,800 cr raise
Ice Make Refrigeration Limited has executed definitive agreements with Galilei Holdings Co. Ltd to form a joint venture for manufacturing commercial refrigerators. The transaction involves a ₹1,800 million preferential issue from Galilei and ₹100 million from other investors, with proceeds earmarked for capacity expansion, debt repayment, and corporate infrastructure development.
*this image is generated using AI for illustrative purposes only.
Ice Make Refrigeration has executed definitive agreements with Galilei Holdings Co. Ltd, a Japanese company listed on the Tokyo Stock Exchange, to establish a joint venture for manufacturing commercial refrigerators. On July 24, 2026, the company signed a Share Subscription Agreement (SSA), a Shareholders’ Agreement (SHA), and a Joint Venture Agreement (JVA). The transaction involves a preferential equity issue of approximately ₹1,800 million from Galilei and ₹100 million from other investors, aiming to expand the company’s footprint in the commercial refrigeration sector.
The Board of Directors approved these core agreements on July 24, 2026, marking a significant step in the company’s long-term strategic growth vision. KPMG acted as the exclusive financial advisor and Cyril Amarchand Mangaldas served as the legal advisor to Ice Make for this transaction. The agreements are subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for August 19, 2026, in-principle approval from stock exchanges, and customary closing conditions.
Joint Venture Structure
The newly incorporated entity, Ice Make Horeca Private Limited, will undertake the business of manufacturing, assembling, distributing, marketing, selling, and supplying commercial upright type refrigerators, commercial table type refrigerators, and any derivatives or enhancements thereof. Galilei will hold a 60% shareholding in the joint venture company, while Ice Make will retain a 40% stake. This partnership is designed to accelerate business expansion and unlock new opportunities in the hotel, restaurant, and catering segments.
| Parameter | Details |
|---|---|
| JV Entity Name | Ice Make Horeca Private Limited |
| Ice Make Stake | 40% |
| Galilei Stake | 60% |
| Total JV Investment | ₹881,900,000 |
Capital Raise and Fund Utilization
Under the SSA, Galilei will subscribe to equity shares for an aggregate subscription amount of approximately ₹1,800 million through a preferential issue. Additionally, the company will raise ₹100 million from other investors through a separate preferential issue. The proceeds from this capital raise will primarily be utilized towards capacity expansion, modernization of existing operations, and scaling of integrated solutions across the refrigeration and cold room value chain.
A portion of the funds will be deployed towards the investment in the proposed joint venture with Galilei. The remaining capital will support the completion of the company’s new corporate office, Centre of Excellence, and state-of-the-art development and testing laboratory. Furthermore, the fund raise will facilitate the repayment or prepayment of certain existing borrowings, resulting in a stronger balance sheet and improved financial flexibility.
Strategic Outlook
As part of its growth strategy, Ice Make will evaluate select inorganic growth opportunities, including potential acquisitions within the refrigeration, cold chain, and allied ecosystems. The objective is to strengthen market presence and expand technological capabilities. The SHA grants Galilei significant governance rights, including the right to appoint one non-executive director or nominate one non-voting observer on Ice Make’s Board. Both parties are bound by 30-month lock-in periods and non-compete restrictions.
What the Numbers Show
The combination of organic capacity expansion and inorganic growth through the Galilei partnership signals a dual-pronged strategy to address growing demand in diverse industry segments. By allocating proceeds to both debt repayment and high-value assets like the Centre of Excellence, the company aims to improve its financial flexibility while reinforcing its focus on innovation and operational excellence. The involvement of top-tier advisors like KPMG and Cyril Amarchand Mangaldas underscores the complexity and significance of this transaction.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE520Y01019/50700665b5be4440.pdf
Historical Stock Returns for Ice Make Refrigeration
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.60% | -3.41% | -13.43% | -11.64% | -0.83% | +920.45% |
How will the 60% majority stake held by Galilei influence Ice Make's operational autonomy and strategic decision-making within the joint venture?
What is the projected timeline for the new commercial refrigerator manufacturing facility to reach full capacity and achieve profitability post-EGM approval?
How might the repayment of existing borrowings using raised capital impact Ice Make's future borrowing costs and overall debt-to-equity ratio?
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