Trom Industries Limited is launching an IPO with a fresh issue of 27,27,600 shares worth INR 31.37 crores. The company aims to fund a solar power plant, working capital needs, and general corporate purposes.
Trom Industries IPO – Important Dates
| Trom Industries Limited IPO Date | July 25, 2024 to July 29, 2024 |
| Trom Industries Limited IPO Listing Date | August 1, 2024 |
| Trom Industries Limited IPO Price | INR 100-115 per share |
| Trom Industries Limited IPO Lot Size | 1200 shares |
| Trom Industries Limited IPO Total Issue Size | INR 31.37 crores |
| Trom Industries Limited IPO Basis of Allotment | July 30, 2024 |
| Trom Industries Limited IPO Initiation of Refunds | July 31, 2024 |
| Trom Industries Limited IPO Credit of Shares to Demat | July 31, 2024 |
| Trom Industries Limited IPO Issue Type | Book Built Issue IPO |
| Trom Industries Limited IPO Listing At | NSE SME |
Trom Industries Limited IPO – Company Profile
Trom Industries Limited is a Solar EPC company specializing in residential rooftops, industrial solar power plants, ground-mounted solar arrays, and solar street lights. It provides comprehensive solar project development and tailored solutions for diverse sectors.
Encompassing engineering design, procurement, construction, project management, and regulatory adherence, their business promotes sustainable energy in residential, industrial, public, and government sectors, trading and distributing solar panels, inverters, and related materials.
In addition to trading footwear on a small scale, they develop green hydrogen projects. Their ISO-certified company offers tailored solutions and ensures timely project completion. Their warehouse is in Gandhinagar, Gujarat, India.
Trom Industries Ltd IPO Fundamental Analysis
Trom Industries Limited Technologies’ financial analysis reveals a mixed performance. Revenue decreased in 2022 and rose in 2024. Equity increased, and debt reliance grew. Profit, EPS, and RoNW improved. Total assets were up, liquidity was more substantial, and inventory turnover decreased.
- Revenue Trend: The revenue decreased from ₹3,030.85 lakhs in March 2022 to ₹2,401.26 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 5,434.88 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹35.98 lakhs in March 2022 to ₹572.93 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹1.44 in March 2022 to ₹8.88 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 17.72% to 77.82%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Trom Industries IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 3,030.85 | 2,401.26 | 5,434.88 |
| Equity (₹ in lakhs) | 221.12 | 249.92 | 1,222.57 |
| Expenses (₹ in lakhs) | 3,008.45 | 2,374.18 | 4,688.69 |
| Profit and Loss After Tax (₹ in lakhs) | 35.98 | 28.86 | 572.93 |
| Diluted EPS only (₹) | 1.44 | 1.15 | 8.88 |
| Return on Net Worth (%) | 17.72 | 12.25 | 77.82 |
| NAV per Equity Share (₹) | 8.81 | 9.96 | 18.90 |
| Total Assets (in lakhs) | 1,854.32 | 2,155.35 | 2,919.93 |
| Total Liabilities (in lakhs) | 1,633.2 | 1,905.43 | 1,697.36 |
| Debt Equity Ratio | 0.39 | 1.97 | 0.47 |
| Current Ratio (in times) | 1.13 | 1.34 | 2.16 |
| Inventory Turnover Ratio | 33.03 | 12.76 | 7.38 |
Trom Industries Limited IPO Peer Comparison
Trom Industries Limited shows strong EPS and RoNW. Alpex Solar and Solex Energy have higher revenues but lower RoNW. Australian Premium Solar has the highest EPS but a low RoNW. Each company exhibits different financial strengths.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| Trom Industries Limited | 5,434.88 | 10 | NA | 8.88 | 77.82 | 18.90 |
| Alpex Solar Limited | 19,592.07 | 10 | 63.86 | 14.12 | 20.28 | 53.50 |
| Australian Premium Solar India Limited | 9,495.86 | 10 | 171.15 | 3.12 | 12.80 | 24.36 |
| Solex Energy Limited | 16,438.83 | 10 | 137.79 | 10.92 | 18.89 | 57.80 |
Trom Industries Ltd IPO Objective
Trom Industries Limited’s main objective is to fund capital expenditures for a solar power plant and meet working capital requirements.
- Funding of capital expenditure requirements of the company towards setting up a Solar Power Plant: The company intends to utilize INR 4.50 crores for setting up a solar power plant, which will reduce power costs and dependence on state electric supply, ensuring uninterrupted power for smooth business operations and financial stability.
- To Meet Working Capital Requirements: The company plans to utilize INR 16.53 crores from net issue proceeds to fund working capital needs: INR 33.91 crores for FY 2025 and INR 42.31 crores for FY 2026, driven by increased turnover and strategic improvements.
- General Corporate Purposes: The company will deploy the balance of funds towards general corporate purposes, including meeting operating expenses, brand building, strategic initiatives, repayment of borrowings, investment in associates, working capital, and enhancing business development and marketing capabilities.
Trom Industries IPO Risks And Challenges
Trom Industries Limited’s risks include heavy revenue concentration in Gujarat, potential adverse effects from government subsidies or policy changes, and decreased demand for solar water pumps due to increased dam construction, which could impact operations and financial conditions.
- Revenue is heavily concentrated in Gujarat, posing risks from changes in state taxes, regulations, or political conditions. This dependence might adversely affect their business, though efforts are underway to diversify revenue sources across India.
- Government subsidies on solar power and water pumps could impact their competitiveness if future policies offer cheaper rates than theirs. This potential shift may adversely affect their business, operations, and financial condition.
- The government could construct more dams to decrease the need for solar water pumps due to improved water accessibility. This shift might materially impact their operations and financial condition.
Trom Industries Ltd IPO – Industry & Market Potential
The global solar power market, valued at $197.23 billion in 2021, is set to grow to $368.63 billion by 2030, driven by government incentives, environmental concerns, and increasing solar cell demand despite COVID-19 disruptions.
As of October 2022, India’s renewable energy capacity was 165.94 GW, aiming for 450 GW by 2030, mainly from solar. Non-hydro renewables added 4.2 GW in FY23, with Northern India expected to become a key hub.
India aims to cut carbon intensity by 45% by 2030, achieve 50% renewable power, and reach net-zero emissions by 2070. Investments in green hydrogen and renewables will drive a $15 billion market boom by 2022.
Trom Industries Limited IPO – Type of Offer
Trom Industries Limited is launching an IPO with a fresh issue of 27,27,600 shares worth INR 31.37 crores. The company aims to fund a solar power plant, working capital needs, and general corporate purposes.
Trom Industries IPO Offer Size
The offer size of Trom Industries Limited is INR 31.37 crores, consisting of a fresh issue of 27,27,600 shares. The company seeks funds for a solar power plant, working capital needs, and general corporate purposes.
Trom Industries Limited IPO Allotment Structure
Trom Industries Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 136,800 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 136,800 shares, are reserved for marker makers.
How to apply for a Trom Industries Limited IPO?
To apply for the Trom Industries Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Trom Industries Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Trom Industries Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Trom Industries Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Trom Industries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Trom Industries Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Trom Industries Limited IPO:
● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Trom Industries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Trom Industries Limited Ltd IPO Offer Registrar
The registrar for the Trom Industries Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFIN TECHNOLOGIES LIMITED
Selenium Tower- B, Plot 31-32,
Gachibowli, Financial District,
Nanakramguda, Serilingampally,
Hyderabad-500 032, Telangana, India.
Tel No.: +91 40 6716 2222
Email: [email protected]
Website: www.kfintech.com
Trom Industries Limited Limited IPO – FAQs
1. What is Trom Industries Limited’s allotment date?
The allotment date of the Trom Industries Limited IPO is July 30, 2024.
2. What is the price band of the Trom Industries Limited IPO?
The price band of the issue is INR 100-115 per share.
3. What is the size of the Trom Industries Limited IPO?
The offer size of Trom Industries Limited is INR 31.37 crores, consisting of a fresh issue of 27,27,600 shares. The company seeks funds for a solar power plant, working capital needs, and general corporate purposes.
4. What is the listing date of the Trom Industries Limited IPO?
The listing date of Trom Industries Limited’s IPO is August 1, 2024.
