Trom Industries Limited is a solar EPC company specializing in residential solar rooftop systems, industrial solar power plants, ground-mounted solar power plants, and solar street lights. Trom Industries IPO is set to raise Rs 31.37 crores. The issue is entirely a fresh issue of 27.28 lakh shares.

About Trom Industries Limited :

• They are into residential solar rooftop, industrial solar power plants, ground-mounted solar power plants, and solar street lights.
• Trom is engaged in the comprehensive development of diverse solar projects. For residential rooftop installations, Trom designs and implements solar systems tailored to individual homes.
• In the industrial sector, Company scales up their 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, Company extends our services to include the Supply and Installation of solar street lights for public and commercial areas.
• Their warehouse is located at Gandhinagar, Gujarat, India.
• Jignesh Patel and Pankaj Pawar are the company’s promoters.

Financials: Trom Industries Limited

Anchors: Trom Industries IPO

Trom Industries IPO: Salient Points

• The government through various schemes such as PM surya Ghar Yojna and PM Kusum Yojna open tender for the different solar companies to bid under the different category of solar installation schemes
• Projects completed.

• Revenue split

• Peers: Company has shown Alpex Solar, Australian Premium Solar, and Solex Energy, as listed peers. Based on big uptick in revenues in FY24, on a PE basis, it is priced lower wrt. peers.
• Majority of the revenue is generated form Gujarat ( in FY23-24 -98%).
• Debt-Equity Ratio is 0.47.
• Trom Industries IPO is coming at a PE ratio of 18.5x (FY24 Earnings).
• I intend to apply in Trom Industries IPO subject to availability of funds. Performance of company is in upward trajectory aided by higher spending for solar power.
• GMP as reported on social media has been Rs. 155 (135%)
• Expert Global Consultants Private Limited is Lead Manager and in their managed issues IPO Performance on listing has been average. In past they have handled IPOs of Mason Infratech Limited, Durlax Top Surface Limited, K2 Infragen Limited, Jay Kailash Namkeen , Royal Sense Limited, Mangalam Alloys Limited, Zeal Global Services Limited, Sonalis Consumer Products Limited, Dollex Agrotech Limited, Rite Zone Chemcon India Ltd
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.