Trom Industries, an Indian-based SME industrial company, is the company that has attracted the attention of the public through its IPO. In this blog, all the essential factors of Trom Industries Limited IPO will be discussed, which includes financials, valuation, market reports, etc. Our primary objective is to give an in-depth, well optimized overview the reader can use to invest wisely.
Table of Contents
Introduction to Trom Industries Ltd IPO
Trom Industries is an established manufacturing company within the industrial segment that deals in merchandise that is essential in the different markets. The company has successfully positioned itself in the market as a provider of quality products and efficient production solutions. As Trom Industries firms up its IPO, investors keep an eye on the process.
Financial Performance and Valuation
- Historical Financial Performance
Trom Industries has established steady expansion of its financial indicators within the past few years. Key financial metrics include:
• Revenue Growth: The financial performance has revealed increased revenues, which signifies a strong market position and a constantly growing customer database.
• Profit Margins: Trom Industries has also enjoyed good profit margins, meaning the company is managing its costs and operations well.
• Earnings Per Share (EPS): The EPS has also shown an upward trend proving its profitability and a sound financial position.
Trom Industries IPO Details
| IPO Date | July 25, 2024 to July 29, 2024 |
| Listing Date | Thursday, August 1, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹100 to ₹115 per share |
| Overall Subscription | 32.7x |
| Lot Size | 1200 Shares |
| Total Issue Size | 2,727,600 shares (aggregating up to ₹31.37 Cr) |
| Fresh Issue | 2,727,600 shares (aggregating up to ₹31.37 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 6,467,266 |
| Share holding post issue | 9,194,866 |
| Market Maker portion | 136,800 shares |
Trom Industries Limited IPO Overall Subscription Update
On its first day of offering, the Trom Industries IPO’s subscription rate is 13.75x times.By the second day, of offering Trom IPO’s overall subscription rate is 32.7x. That indicates a strong investors demand for the IPO. Which may seen an increase starting from the second day onward.
Trom Industries Ltd IPO GMP Today
The last updated Grey Market Premium of the Trom Industries Limited IPO is ₹30. The estimated listing price of the Trom Industries IPO is ₹110-₹115 per share. This price combines the cap price and today’s GMP. This table shows the Trom Industries IPO’s GMP trend from the previous days.
The expected listing share price range of Trom Industries Ltd IPO is ₹115-₹143.
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| GMP Date | IPO Price | GMP Price |
| July 30, 2024 | ₹110-₹115 | ₹33 |
| July 29, 2024 | ₹110-₹115 | ₹35 |
| July 28, 2024 | ₹110-₹115 | ₹30 |
| July 27, 2024 | ₹110-₹115 | ₹30 |
| July 26, 2024 | ₹110-₹115 | ₹28 |
| July 25, 2024 | ₹110-₹115 | ₹40-₹50 |
| July 24, 2024 | ₹110-₹115 | ₹45 |
| July 23, 2024 | ₹110-₹115 | ₹45 |
| July 22, 2024 | ₹110-₹115 | ₹50 |
Trom Industries IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Trom Industries Ltd IPO Timeline (Tentative Schedule)
Trom Industries IPO opens on July 25, 2024, to July 29, 2024. Important dates for Trom Industries Limited IPO.
| IPO Open Date | Thursday, July 25, 2024 |
| IPO Close Date | Monday, July 29, 2024 |
| Basis of Allotment | Tuesday, July 30, 2024 |
| Initiation of Refunds | Wednesday, July 31, 2024 |
| Credit of Shares to Demat | Wednesday, July 31, 2024 |
| Listing Date | Thursday, August 1, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 29, 2024 |
Trom Industries IPO Lot Size
The minimum quantity that shareholders can make an offer for is 1200 shares and in lots of 1000 share thereafter . The table below indicates the minimum and maximum amount of investment by retail investors and HNI and number of shares.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1200 | ₹138,000 |
| Retail (Max) | 1 | 1200 | ₹138,000 |
| HNI (Min) | 2 | 2,400 | ₹276,000 |
Trom Industries IPO Promoter Holding
Jignesh Patel and Pankaj Pawar are the promoters of the company.
| Share Holding Pre Issue | 98.84% |
| Share Holding Post Issue | 69.52% |
Trom Industries Limited Financial Information (Restated)
Revenue of Trom Industries Limited has grown by 125.98% and profit after tax (PAT) by 1885.2% in the Financial year ending with March 31, 2024 to March 31, 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 2,919.93 | 2,155.35 | 1,854.32 |
| Revenue | 5,454.68 | 2,413.80 | 3,056.55 |
| Profit After Tax | 572.93 | 28.86 | 35.98 |
| Net Worth | 1,222.57 | 249.92 | 221.12 |
| Reserves and Surplus | 575.84 | 248.92 | 220.12 |
| Total Borrowing | 573.71 | 492.82 | 85.66 |
| Amount in ₹ Lakhs | |||
Key Performance Indicator of Trom Industries Ltd.
The market capitalization of Trom Industries IPO is Rs 105.74 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE | 77.82% |
| ROCE | 47.11% |
| Debt/Equity | 0.47 |
| RoNW | 77.82% |
| P/BV | 6.08 |
| PAT Margin (%) | 10.54 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 8.86 | 6.23 |
| P/E (x) | 12.98 | 18.46 |
Note:
- Pre IPO EPS being based on Pre issue shareholding as on date of RHP and using the latest FY earnings available in the RHP which is FY ending March 31 2024.
- Post Issue EPS is therefore calculated using the Post issue shareholding and annualized FY earnings of March 31, 2024 disclosed in RHP.
Objects of the Issue (Trom Industries IPO Objectives)
The company intends to utilize the proceeds of the issue to meet the following objects:
- Financing of capital requirements of the Solar Power Plant of the Company;
- To supplement the working capital needs; and
- General corporate purposes.
Subscription Details
Trom Industries IPO has attracted many institutional and retail investors partly due to the interest shown by investors. The number of subscriptions and the number of times it was oversubscribed may also be useful in evaluating the Market reception of the IPO.
Market Outlook and Investment Analysis
Industry Overview
The industrial sector of India is expected to grow significantly, especially due to the government policies like the ‘Make in India’ and the rising investment in infrastructure. Trom Industries has many product types and enjoys wide recognition in the market, making the company suitable to capitalise on these tendencies.
Competitive Positioning
Trom Industries competes with other players in the domestic market as well as the global market. However, it has a commendable operation strategy, product differentiation, and customer orientation as some of its strengths.
Risk Factors
Investors should consider the following risks:
- Market Fluctuations: The industrial sector is highly volatile; therefore, it is vulnerable to fluctuations in the economic cycles, affecting Trom Industries.
- Regulatory Changes: Prohibitions, restrictions and regulatory changes may impact the company’s operations in specific areas.
- Competition: Higher competition may lead to a decrease in the market share hence affecting the profitability of the company.
Trom Industries Limited Contact Details
Trom Industries Limited
4th Floor, 421, Pramukh Tangent,
NR. Sargasan Cross Road,
Gandhinagar – 382421
Phone: +91-079 29656678
Email: [email protected]
Website: http://www.tromindustries.com/
Conclusion
Trom Industries Ltd IPO is the best chance for investors who want to invest in a company that has been in existence and serving its market for a considerate amount of time. With the above achievements, strong financial profile and well-defined growth strategy, Trom Industries Limited is certain to elicit a lot of investor attention. But it would be wise to consider these risks and conduct proper analysis to decide where to invest.