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.
Price and Investment Details:
- The price band for Trom Industries IPO is set at ₹100 to ₹115 per share.
- The minimum lot size is 1,200 shares.
- Retail investors must invest a minimum of ₹138,000.
IPO Structure:
- The IPO includes a fresh issue of 27.27 lakh shares with no offer for sale (OFS).
- Trom Industries raised ₹8.93 crore from anchor investors on July 24.
Allocation:
- 50% of the shares are for qualified institutional buyers (QIB).
- 35% are for retail investors.
- 15% are for non-institutional investors.
Use of Funds:
- The money raised will be used for capital expenditure, working capital, and general corporate purposes.
Important Dates:
- Final allotment: July 30.
- Expected listing on NSE SME: August 1.
Managers:
- Expert Global Consultants Private Limited is the book-running lead manager.
- Kfin Technologies Limited is the registrar.
- Sunflower Broking is the market maker for the IPO.
Subscription Status:
- By 12 noon on July 26, the IPO was subscribed 18.7 times.
- The retail portion was subscribed 28.37 times.
- The non-institutional investors (NII) category was subscribed 20.39 times.
- The qualified institutional buyers category was subscribed 0.5 times.
Grey Market Premium (GMP):
- The IPO was trading at a GMP of ₹125, indicating an estimated listing price of ₹240, which is 108.7% higher than the issue price of ₹115.
About Trom Industries:
- Founded in 2011, Trom Industries is a solar EPC company.
- They specialize in residential solar rooftops, industrial solar power plants, ground-mounted solar power plants, and solar street lights.
- For the year ending March 2024, Trom Industries reported revenues of ₹54.34 crore, up 126% from the previous year.
- They posted a net profit of ₹5.72 crore, a significant increase from ₹28.86 lakh in FY23.
Review:
- Trom Industries operates in a competitive and fragmented market.
- Despite inconsistent past performance, the company showed strong earnings for FY24.
- Based on these earnings, the IPO appears reasonably priced.
- Investors may consider investing for the medium to long term, according to Dilip Davda of Chittorgarh.com.
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