Home >> Blog >> Trom Industries Ltd IPO: Review, Valuation, Opening Date & GMP
Trom Industries Ltd IPO: Review, Valuation, Opening Date & GMP
![Trom Industries Limited-IPO](../admin/media/Trom Industries Ltd IPO.webp)
Table of Contents
- Trom Industries Limited IPO-Complete Overview
- Trom Industries Limited IPO Overview
- Company Financial
- The Objective Of The Issue
- Peers Of Trom Industries Limited
- Evaluation
- IPO's Strengths
- IPO’s Weaknesses
- IPO GMP Today
- Promoters And Management Of Trom Industries Limited IPO
- Trom Industries Limited IPO Lead Managers
- Dividend Policy
- Conclusion
Trom Industries Limited IPO-Complete Overview
Trom Industries Limited IPO is an SME Book Built Issue of Rs.31.37 crores by Trom Industries Limited that was established in 2011, is a solar EPC (Engineering, Procurement, and Construction) company that specializes in residential solar rooftop systems, industrial solar power plants, ground-mounted solar power plants, and solar street lights.
Trom Industries has the following business segments:
Residential rooftop installations: The company creates and deploys solar systems tailored to individual homes.
Industrial installations: The company designs and develops large-scale solar power facilities for industrial applications.
Ground-mounted solar power plants: This requires the creation of ground-mounted solar collectors.
Supply and installation of solar street lighting in public and commercial sectors.
The company's product range comprises (1) solar products: solar street lights, solar freezers, off-grid solar systems, solar home lights, solar water purifiers, and solar water pumps; and (2) AC LED lights: AC LED road lights and AC LED flood lights.
The company employed 31 people as of March 1, 2024, including directors and important managerial staff.
Dear readers, we are pleased to provide details about the approaching SME IPO. The company plans to launch its IPO on July 25, 2024. Let's take a closer look at the IPO's offerings below.
Trom Industries Limited IPO Overview
Trom Industries's IPO of Rs.31.37 crore comprises a wholly Fresh Issue of 27.28 lac Shares (amounting to Rs.31.37 crores) out of which 35% is allocated to retail investors, 50% to institutional investors, 15% to non-institutional-investors.
This SME IPO will be available to investors on July 25, 2024, and conclude on July 29, 2024. The anticipated listing date for the IPO is Thursday, August 1, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.100 to Rs.115.
If you want to apply for the IPO, Click Here to Open a Demat Account.
Company Financial
The company's revenue increased by 125.98%, while profit after tax (PAT) increased by 1885.2% during the financial years ending March 31, 2024, and March 31, 2023.
Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.
-
The total revenue of the company is Rs.643.92 lac.
-
The net worth of the company is Rs.354.80 lac.
-
The company's EBITDA is Rs.101.66 lac.
-
The total assets of the company are Rs.560.79 lac.
(Amount in Lac)
Period |
31 Mar 2024 |
31 Mar 2023 |
31 Mar 2022 |
Total Assets |
2,919.93 |
2,155.35 |
1,854.32 |
Total Revenue |
5,454.68 |
2,413.80 |
3,056.55 |
PAT |
572.93 |
28.86 |
35.98 |
Net Worth |
1,222.57 |
249.92 |
221.12 |
Reserve & Surplus |
575.84 |
248.92 |
220.12 |
Borrowing |
573.71 |
492.82 |
85.66 |
Revenue Bifurcation
Below is the revenue breakdown for various activities:
(Amount in Lac)
Net Cash Flow In Multiple Activities |
FY 2024 |
FY 2023 |
FY 2022 |
Net Cash Flow Operating Activities |
-370.83 |
-226.50 |
71.78 |
Net Cash Flow Investing Activities |
8.98 |
-2.94 |
21.71 |
Net Cash Flow Financing Activities |
366.35 |
212.93 |
-129.83 |
Geography-wise Revenue Breakdown For The Last Three Fiscals.
The Objective Of The Issue
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
-
Funding for establishing a solar power plant.
-
Meeting working capital requirements.
-
Corporate Purposes.
Peers Of Trom Industries Limited
(Figures as of Fiscal 2024)
Company Name |
Face Value (Rs.) |
EPS (Rs.) |
P/E (x) |
Alpex Solar Limited |
10 |
14.12 |
63.86 |
Australian Premium Solar India Limited |
10 |
3.12 |
171.15 |
Solex Energy Limited |
10 |
10.92 |
137.79 |
Evaluation
The price of this IPO is Rs.100 to Rs.115 for each Share.
Evaluation Of P/E Ratio
Considering the Fiscal 2024, with EPS of Rs.8.88 from the last year, the resulting P/E ratio is 12.95x.
Considering the weighted EPS of Rs.5.06 for the last three years, the P/E ratio is 22.72x.
Comparative Analysis With Listed Peers
The average P/E Ratio of the industry is 124.27x.
Particulars |
P/E Ratio |
Highest |
171.15 |
Lowest |
63.86 |
Average |
124.27 |
In simple words, the P/E ratio of Trom Industries Limited-IPO (12.95x and 22.72x), compared with the industry’s average P/E of 124.27x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.
IPO's Strengths
-
Extensive Variety of Products.
-
Strong relationships with consumers and suppliers.
-
An accomplished management group with sector knowledge.
IPO’s Weaknesses
-
The revenues are heavily reliant on its operations in the geographic region of Gujarat. Any negative developments in this region may negatively affect the company’s financial situation and performance.
-
The government may start constructing solar water pumps/products and provide them at lower prices.
-
As the government builds additional dams, the need for solar pumps will decrease.
-
The company had negative cash flows from investment and financing activities.
-
They have supplier concentration concerns as they rely on a small number of third-party suppliers for crucial raw materials and components. Supply constraints or quality issues may delay project completion and hinder its ability to offer profitable services to customers, negatively impacting its business, financial condition, and operations.
-
Disruptions to logistics and transportation services may hinder supplier deliveries, raise transportation costs, and negatively impact its operations.
IPO GMP Today
Trom Industries Limited IPO’s latest GMP is Rs.155.
Trom Industries Limited IPO Timetable (Tentative)
The IPO is scheduled from July 25 to July 29, 2024, with allotment on July 30, refund initiation on July 31, and listing on August 1, 2024.
Events |
Date |
IPO Opening Date |
July 25, 2024 |
IPO Closing Date |
July 29, 2024 |
IPO Allotment Date |
July 30, 2024 |
Refund Initiation |
July 31, 2024 |
IPO Listing Date |
August 1, 2024 |
Trom Industries Limited IPO Details
The IPO with a Face Value of Rs.10 per Share is set to start on July 25, close on 29 July, and offer a total issue size of 2,727,600 Shares (aggregating up to Rs.31.37 Cr) comprising a whole fresh issue size of 2,727,600 Shares (totaling up to Rs.31.37 Cr).
IPO Opening & Closing date |
July 25, 2024 to July 29, 2024 |
Face Value |
Rs.10 per Share |
Issue Size |
2,727,600 Shares (totaling up to Rs.31.37 Cr. |
Offer For Sale |
NA |
Fresh Issue |
2,727,600 Shares (totaling up to Rs.31.37 Cr. |
Listing At |
NSE, SME |
Issue Type |
Book Built Issue IPO |
Registrar |
Kfin Technologies Limited |
Trom Industries Limited IPO Lot Details
The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.138000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.276000.
Minimum Lot Investment (Retail) |
1 Lot |
Maximum Lot Investment (Retail) |
1 Lot |
HNI (Min) |
2 Lots |
Trom Industries Limited IPO Reservation
Institutional Portion |
50% |
Retail Portion |
35% |
Non-Institutional Portion |
15% |
Promoters And Management Of Trom Industries Limited IPO
-
Jignesh Patel
-
Pankaj Pawar
Pre-Issue Promoter Shareholding |
98.84% |
Post-Issue Promoter Shareholding |
69.52% |
Trom Industries Limited IPO Lead Managers
-
Expert Global Consultants Private Limited
Dividend Policy
The company has not paid any dividends in the last three years.
Conclusion
The company has experienced negative cash flow in operating, financing, and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.
We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.
Thanks for scrolling by.
Finowings IPO Analysis
Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO.
You must consult your financial advisor before making any financial decisions.
To Apply for the IPO, Click Here.
To Read the Prospectus of the Company Click Here to Download the DRHP.
We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.
Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.
Click Here to stay updated with the Upcoming IPOs.
Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!
Open a world of Stock Market by Opening a Demat Account with your favourite Broking firm & Get a trading Strategy worth Rs.15,000!
Click here to open a Free Demat Account & Start Investing Now
Frequently Asked Questions
The IPO will start accepting applications on July 25, 2024.
This IPO is valued at Rs.100 to Rs.115 for each offer.
The IPO's total issue size is 2,727,600 Shares (totaling up to Rs.31.37 Cr).
The IPO closing date is July 29, 2024.
The money from the IPO is to be used to fund the funding for establishing a solar power plant, meeting working capital requirements, and Corporate Purposes.