Trom Industries IPO: The initial public offering (IPO) of Trom Industries Limited, which opened for public subscription on Thursday, has received a robust response from investors. As of 11:19 am on the second day of bidding on Friday, July 26, the 31.37-crore SME IPO has been subscribed 17.91 times, garnering bids for 3,24,87,600 shares against 18,14,400 shares on offer.
According to the latest data, the retail quota has seen a 27.18 times subscription, while the non-institutional investors category has been subscribed 19.47 times. The qualified institutional buyers (QIB) category has received a 50 per cent subscription.
The Trom Industries IPO will close on Monday, July 29. The share allotment is expected to be finalised on July 30, with its listing on the NSE SME scheduled for August 1.
Company Background
Trom Industries Ltd, founded in 2011, is a solar EPC (engineering, procurement, and construction) company specialising in residential solar rooftop systems, industrial solar power plants, ground-mounted solar power plants, and solar street lights.
The price band of the IPO has been set at Rs 100-Rs 115 per share.
Trom Industries IPO GMP Today
According to market observers, unlisted shares of Trom Industries Ltd are trading Rs 125 higher in the grey market compared to its issue price. The Rs 125 grey market premium (GMP) suggests that the grey market expects a 108.7 per cent listing gain from the public issue. It is important to note that GMP is based on market sentiments and is subject to change.
‘Grey market premium’ reflects investors’ willingness to pay more than the issue price for unlisted shares.
Details of Trom Industries IPO
The Trom Industries IPO is entirely a fresh issue of 27.28 lakh shares. Investors need to apply for a minimum of 1,200 equity shares and in multiples thereof. Therefore, the minimum investment by retail investors would be Rs 1,38,000 [1,200 (lot size) x Rs 115 (upper price band)].
The IPO proceeds will be utilised for:
- Funding capital expenditure requirements of the company towards the setup of a Solar Power Plant.
- Meeting working capital requirements.
- General corporate purposes.
Financial Performance
Trom Industries Ltd’s revenue surged by 125.98 per cent, and its profit after tax (PAT) increased by an impressive 1885.2 per cent during the financial year 2023-24.
Key Players in the IPO
Expert Global Consultants Private Limited is the book-running lead manager of the Trom Industries IPO, while Kfin Technologies Limited is the registrar for the issue. Sunflower Broking is the market maker for the Trom Industries IPO.
Conclusion
Trom Industries’ IPO has garnered significant interest from investors, reflecting confidence in the company’s growth potential in the solar energy sector. The strong subscription numbers and the positive grey market premium indicate a favorable reception in the market. As the company plans to utilize the proceeds for strategic expansions and operational enhancements, investors and market watchers will keenly follow the developments in the coming days.
