Trom Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Jul 2024 – 29 Jul 2024
- Listing date
- 01 Aug 2024
- Face value
- ₹10 per share
- Issue price
- ₹115 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹31.37 Cr
- Market cap at offer price
- ₹106 Cr
- Promoter holding
- 98.84% → 69.52% pre-issue → post-issue
- ISIN
- INE0SYV01018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- 4th Floor, 421, Pramukh Tangent, NR.Sargasan Cross Road, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 7,76,400 | — | — |
| Market maker | 1,36,800 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹115
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,38,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,76,000 |
| S-HNI (max) | 7 | 8,400 | ₹9,66,000 |
| B-HNI (min) | 8 | 9,600 | ₹11,04,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.86 | 6.23 |
| P/E (×) | 12.98 | 18.46 |
| Price to book (×) | 6.08 | — |
| Market cap | — | ₹106 Cr |
Key performance indicators
- Return on net worth
- 77.82%
- ROCE
- 47.11%
- Debt / equity
- 0.47
- PAT margin
- 10.54%
- NAV per share
- ₹18.90
- Price to book
- 6.08
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Trom Industries
Trom Industries Limited was originally formed as a Partnership Firm under the name 'Trom Solar' on August 08, 2011. It was converted into a public limited company on April 10, 2019, and received a fresh Certificate of Incorporation dated August 01, 2019, with Corporate Identity Number U29309GJ2019PLC109376. The company is a Solar EPC specialist that designs and implements solar systems for residential rooftop installations, scales operations for larger industrial solar power plants, develops ground-mounted solar arrays on open land, and provides solar street light installation services. The company's business encompasses engineering design, procurement of materials, on-site construction, project management, and regulatory compliance. Trom also engages in the extensive trading and distribution of solar panels, inverters, and materials connected to solar power plant establishment and functioning. The company was engaged in small-scale trading of footwear during the year and is developing green hydrogen projects as part of future business endeavors. The warehouse is located at Plot No. B/53-A, G.I.D.C Electronics Estate, Sector No. 25, Gandhinagar-382024, Gujarat, India.
Company Analysis
from RHPTrom Industries Limited is a Solar EPC (Engineering, Procurement, and Construction) company specializing in residential solar rooftop, industrial solar power plants, ground-mounted solar power plants, and solar street lights, with operations spanning solar project development, trading of solar products, and emerging green hydrogen projects.
Trom Industries Limited was originally formed as a Partnership Firm under the name 'Trom Solar' on August 08, 2011. It was converted into a public limited company on April 10, 2019, and received a fresh Certificate of Incorporation dated August 01, 2019, with Corporate Identity Number U29309GJ2019PLC109376. The company is a Solar EPC specialist that designs and implements solar systems for residential rooftop installations, scales operations for larger industrial solar power plants, develops ground-mounted solar arrays on open land, and provides solar street light installation services. The company's business encompasses engineering design, procurement of materials, on-site construction, project management, and regulatory compliance. Trom also engages in the extensive trading and distribution of solar panels, inverters, and materials connected to solar power plant establishment and functioning. The company was engaged in small-scale trading of footwear during the year and is developing green hydrogen projects as part of future business endeavors. The warehouse is located at Plot No. B/53-A, G.I.D.C Electronics Estate, Sector No. 25, Gandhinagar-382024, Gujarat, India.
Objects of the Issue
- Funding of capital expenditure requirements for setup of Solar Power Plant ₹450.00 lakhs p.30
- Working Capital Requirements ₹1,652.56 lakhs p.30
- General Corporate Purposes p.30
- Funding of capital expenditure requirements of our Company towards set up of Solar Power Plant ₹450.00 Lakhs p.85
- To meet the working capital requirements ₹1,652.56 Lakhs p.87
- General corporate purposes p.89
- Repayment of borrowings
- General corporate purposes
Issue Structure
- Total Issue
- Up to 27,27,600 Equity Shares aggregating to ₹[●] Lakhs
- Fresh Issue
- Up to 27,27,600 Equity Shares of Face Value of ₹10/- each
- Offer for Sale
- Nil
- Price Band
- ₹[●] per Equity Share (Floor Price) to ₹[●] per Equity Share (Cap Price)
- Lot Size
- 1,200 Equity Shares
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue through Solar EPC services for residential, industrial, and ground-mounted solar installations, as well as solar street lights. Additionally, the company generates revenue from trading and distribution of solar panels, inverters, and related materials. The company operates on a purchase order basis with customers and engages in trading as a relatively new sector to expand business scope. Revenue from operations for the year ended March 31, 2024 was ₹5,434.88 lakhs.
Business Segments
SWOT Analysis
- • Solar EPC company with comprehensive project development capabilities(p.29)
- • Strong revenue growth trajectory(p.32)
- • Positive profitability improvement(p.32)
- • Diversified business model across solar segments(p.29)
- • Strong revenue growth with 126% increase from FY23 to FY24(p.58)
- • High profitability metrics with 77.82% RoNW and 45.8% ROCE in FY24(p.97)
- • Experienced management team with industry expertise(p.94)
- • Improved EBITDA margin expanding to 15.27% in FY24 from 5.41% in FY23(p.97)
- • Experienced management with deep solar energy expertise(p.128)
- • ISO certifications and quality standards compliance(p.119)
- • Strong relationships with customers enabling repeat business(p.128)
- • Diversified product portfolio across residential, industrial, and commercial segments(p.117)
- • Significant revenue and EBITDA margin growth trajectory(p.120)
- • Experienced promoters in energy sector(p.173)
- • Strong revenue growth trajectory(p.213)
- • Improved profitability and margins(p.215)
- • Beneficial cost reduction in solar modules(p.216)
- • ISO certifications and quality management systems(p.227)
- • High geographical revenue concentration in Gujarat(p.36)
- • Heavy dependence on top five customers(p.37)
- • Rented premises not owned by the company(p.37)
- • No long-term supplier agreements(p.37)
- • Significant supplier concentration(p.43)
- • Negative operating cash flows(p.39)
- • High leverage with unsecured loans(p.40)
- • Pending litigation with Assam government(p.38)
- • History of statutory compliance delays(p.45)
- • High customer concentration with top customer representing 15.19% of revenue(p.97)
- • Significant leverage with debt-equity ratio of 0.47 in FY24(p.97)
- • Elevated working capital requirements at 104.37 days in FY24(p.97)
- • Dependence on limited number of projects with high concentration in top 10 customers at 67%(p.97)
- • High customer concentration risk(p.120)
- • Significant supplier concentration dependency(p.134)
- • Narrow geographic presence heavily concentrated in Gujarat(p.123)
- • Rising working capital requirements(p.120)
- • Small employee base with limited scale(p.120)
- • High inventory holding relative to revenue(p.190)
- • Significant dependence on top customers(p.220)
- • Substantial trade receivables aging(p.190)
- • High leverage with substantial borrowings(p.210)
- • Outstanding tax defaults(p.222)
- • Massive global solar market growth(p.29)
- • India's renewable energy commitment and targets(p.29)
- • Strong India energy demand growth(p.29)
- • Expansion into green hydrogen projects(p.29)
- • Working capital funding from IPO proceeds(p.43)
- • Global solar power market expected to reach US$ 368.63 billion by 2030, growing at 7.2% CAGR(p.112)
- • Government initiatives and tax rebates driving solar installation demand(p.113)
- • India's strong capital expenditure support with 37.4% increase in government capex for FY24(p.112)
- • Setup of solar power plant to reduce power costs and dependence on state electricity(p.86)
- • India's renewable energy capacity expansion targets creating large market demand(p.114)
- • Strong government support and incentives for solar adoption(p.116)
- • Rapid market growth in commercial and industrial solar segments(p.123)
- • Expansion into green hydrogen projects as future growth avenue(p.117)
- • Geographic expansion opportunity into new Indian states and markets(p.128)
- • Rooftop solar programme expansion creating residential market demand(p.116)
- • Strategic shift from government to private sector contracts(p.216)
- • Growing demand in solar sector(p.217)
- • Expansion into green hydrogen projects(p.211)
- • Trading and distribution expansion potential(p.211)
- • Government may provide solar products at cheaper rates(p.36)
- • Reduced demand for solar pumps from dam construction(p.36)
- • Intense competition in solar industry(p.38)
- • Unfavorable weather conditions impact demand(p.38)
- • Supply chain disruption risks from pandemic or lockdowns(p.50)
- • Rising raw material prices and cost inflation(p.49)
- • Changes in government regulations and policies(p.51)
- • Indian tax changes affecting profitability(p.51)
- • Foreign exchange and interest rate volatility(p.40)
- • Global economic slowdown with growth expected at 2.1% in 2023 and 2.4% in 2024(p.105)
- • Restrictive financial conditions and tight monetary policy affecting emerging markets(p.105)
- • Natural calamities like earthquakes, tsunami, and floods could negatively impact Indian economy(p.53)
- • Industry malpractices by players affecting overall performance of emerging companies(p.53)
- • Risk of adverse revisions to India's credit ratings affecting ability to raise financing(p.53)
- • Intense competition from large established players(p.133)
- • Regulatory changes and compliance requirements for renewable energy(p.135)
- • Supply chain disruptions and import restrictions on solar components(p.123)
- • Tariff and customs duty changes affecting project economics(p.136)
- • Dependence on grid connectivity and net metering policies(p.128)
- • Insurance coverage limitations for operational hazards(p.134)
- • Litigation with state authorities regarding contracts(p.222)
- • Dependence on government policies and subsidies(p.215)
- • Volatility in solar module pricing(p.216)
- • Macroeconomic and inflation impacts(p.220)
- • High finance costs and borrowing dependence(p.176)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Jignesh Patel | Promoter | 49.22% | 34.62% |
| Pankaj Pawar | Promoter | 48.84% | 34.35% |
| Jignesh Patel | Promoter & Director | 49.22% | 34.62% |
| Pankaj Pawar | Promoter & Director | 48.84% | 34.35% |
| Gomtiben Patel | Promoter Group | 0.39% | 0.27% |
| Priyanka Pawar | Promoter Group | 0.39% | 0.27% |
| Jignesh Patel | Promoter/Chairman cum Managing Director | 49.22% | — |
| Pankaj Pawar | Promoter/Executive Director | 48.84% | — |
| Jignesh Patel | Promoter/Managing Director | 49.22% | — |
| Pankaj Pawar | Promoter/Executive Director | 48.84% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.