The initial public offering (IPO) of Trom Industries opened for subscription on July 25 and will close on July 29. The company aims to raise about ₹31.37 crore through this SME IPO.
The price band for Trom Industries IPO is set at ₹100 to ₹115 per share, with a minimum lot size of 1,200 shares. Retail investors must invest a minimum of ₹138,000.
The IPO comprises an entirely fresh equity issue of 27.27 lakh shares with no offer for sale (OFS) component.
Trom Industries also raised ₹8.93 crore from anchor investors on July 24, a day before the IPO opened.
The IPO allocation is divided into 50 percent for qualified institutional buyers (QIB), 35 percent for retail investors, and 15 percent for non-institutional investors.
The net proceeds from the IPO will be used for funding capital expenditure, working capital requirements, and general corporate purposes.
The final allotment is expected on July 30, and the company's shares are likely to get listed on NSE SME on August 1.
Expert Global Consultants Private Limited is the book-running lead manager for the Trom Industries IPO, while Kfin Technologies Limited is the registrar. Sunflower Broking is the market maker for the IPO.
By 12 noon on July 26, the second day of bidding, the IPO was subscribed 18.7 times, receiving bids for 3.39 crore shares against 18.15 lakh shares on offer. The retail investors' portion was subscribed 28.37 times, the non-institutional investors (NII) category 20.39 times, and the qualified institutional buyers category 0.5 times.
The IPO was trading at a grey market premium (GMP) of ₹125, indicating an estimated listing price of ₹240, up 108.7 percent from its issue price of ₹115. The GMP was the same in the previous session but rose from ₹115 on July 24, ₹111 on July 23, and ₹65 on July 22.
Founded in 2011, Trom Industries is a solar EPC company specialising in residential solar rooftops, industrial solar power plants, ground-mounted solar power plants, and solar street lights. The company designs and implements solar systems tailored to individual homes for residential rooftop installations. In the industrial sector, it scales up operations to design and construct larger solar power plants catering to industrial needs. Ground-mounted solar power plants involve the development of solar arrays on open land. Additionally, the company extends its services to include the supply and installation of solar street lights for public and commercial areas.
For the year ended March 2024, the company reported total revenues of ₹54.34 crore, up 126 percent YoY from ₹30.56 crore in FY23, and a net profit of ₹5.72 crore, up 1885 percent YoY from ₹28.86 lakh in FY23.
The company operates in a highly competitive and fragmented segment, with inconsistency in its top and bottom lines. However, it posted strong earnings for FY24. Based on these earnings, the issue appears reasonably priced, indicating likely trends going forward. Investors may consider investing for the medium to long term, according to Dilip Davda of Chittorgarh.com.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
