Trom Industries Limited IPO

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Trom Industries Limited is a prominent Solar EPC (Engineering, Procurement, and Construction) company, specializing in a variety of solar energy solutions.

Their key areas of operation include:
i. Residential Solar Rooftop Installations                 ii. Industrial Solar Power Plants
iii. Ground-Mounted Solar Power Plants                  iv. Solar Street Lights

Comprehensive Solar Project Development

Their business encompasses all aspects of solar project development, including:
i. Engineering Design: Crafting detailed and efficient designs for solar installations.
ii. Procurement of Materials: Sourcing high-quality materials and components required for solar projects.
iii. On-Site Construction: Executing construction with precision and adherence to safety standards.
iv. Project Management: Overseeing projects from inception to completion, ensuring timely and budget-compliant delivery.
v. Regulatory Compliance: Ensuring all projects meet the necessary regulatory standards and guidelines.

Product Trading and Distribution

In addition to project development, Trom Industries Limited is involved in the trading and distribution of a diverse range of solar products, including:
i. Solar Panels                          ii. Inverters
iii. Various Materials: Essential for the establishment and functioning of solar power plants.

Commitment to Sustainability

Trom Industries Limited is committed to driving the growth of sustainable energy solutions across various sectors, including residential, industrial, public domains, and government sectors. Their comprehensive approach to solar energy projects underscores their dedication to contributing to a greener and more sustainable future.

Conclusion

Trom Industries Limited stands as a key player in the solar energy industry, offering a wide range of services and products that cater to the diverse energy needs of their clients. Their commitment to innovation, quality, and sustainability positions them as a leader in the Solar EPC sector, with a bright future in the development of green hydrogen projects and beyond.

Objects of the Trom Industries Limited IPO:

The company intends to utilize the proceeds of the issue to meet the following objects: i. Funding of capital expenditure requirements of the Company towards set up of Solar Power Plant; ii. To meet the working capital requirements; and iii. General corporate purposes.
DRHP of Trom Industries Limited IPO
RHP of Trom Industries Limited IPO

Trom Industries Limited IPO Details:

Open Date: Jul 25 2024
Close Date: Jul 29 2024
Total Shares: 2,727,600
Face Value: ₹ 10 Per Equity Share
Issue Size: 31.37 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 100 - 115 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 01 2024

Promoters And Management:

Jignesh Patel, aged 38, holds an Electrical Engineering diploma. He is the Promoter and Chairman cum Managing Director of the Company. He has been associated with the Company since incorporation. He has more than 15 years of experience in the energy sector. He was appointed as the Managing Director pursuant to a resolution passed by our board dated April 15, 2022 and by passing board resolution dated March 11, 2024 he was redesignated as Chairman cum Managing Director. He is currently responsible for the overall management and affairs of the Company, including devising investment strategies, developing industry networks for further business development, and overall development of the business of the Company. Pankaj Pawar, aged 38 years, holds a BTech in Electrical Engineering. He is the Promoter and Executive Director of the Company. He has been associated with the Company since incorporation. He has 16 years of experience in the energy sector. He is engaged with the company since the incorporation. He is actively involved in the day-to-day operations of the company and currently oversees and controls the overall commercial operations, including but not limited to formulating business strategies for the Company. Amrutbhai Patel, aged 64 years, holds a Higher Secondary Certificate in Science Stream. He has approximately 6 years of administrative experience. He was appointed as Executive Director pursuant to a resolution passed by the board dated September 08, 2021. By passing board resolution dated February 19, 2024 he was redesignated as Non-Executive director of the company. He is currently heading the human resources and administrative departments of the Company. He has spearheaded employee engagement initiatives in the Company.

Financials of Trom Industries Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 3,031 2,401 5,435
Other Income 26 13 20
Total Revenue 3,057 2,414 5,455
Purchase of Stock in Trade 2,752 2,211 4,771
Change in inventories -7 -186 -910
Employees Benefit Expenses 93 105 529
Other Expenses 125 153 214
EBITDA 93 130 850
OPM (%) 3.06% 5.38% 15.58%
Depreciation & Amortisation 11 10 7
EBIT 83 119 842
Finance Cost 35 80 76
PBT 48 40 766
Tax 12 11 193
PAT 36 29 573
NPM (%) 1.18% 1.20% 10.50%
No.of Shares 91.94 91.94 91.94
EPS 0.39 0.31 6.23

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Trom Industries Limited 54 6 6.23 18.5 115 106
Alpex Solar Limited 413 27 10.86 88.4 818 2,002
Australian Premium Solar India Limited 150 6 3.12 160.0 497 981
Solex Energy Limited 366 9 10.91 153.0 1,671 1,336
* All the data is as per FY24.

Recommendation on Trom Industries Limited IPO:

Review and Recommendation of Trom Industries by team IZ is 5/10. 1. Trom Industries Limited specializes in Solar EPC (Engineering, Procurement, and Construction) projects, encompassing a wide range of solar energy solutions: i. Residential Solar Rooftop                                        ii. Industrial Solar Power Plants iii. Ground-Mounted Solar Power Plants                iv. Solar Street Lights 2. Comprehensive Services Their services encompass every aspect of solar project development: i. Engineering Design                           ii. Procurement of Materials                       iii. On-Site Construction iv. Project Management                       v. Regulatory Compliance 3. Diverse Product Range In addition to project development, their operations include the trading and distribution of a broad range of solar-related products such as solar panels, inverters, and other materials essential for the establishment and functioning of solar power plants. They have also engaged in trading various types of footwear on a small scale. 4. Green Hydrogen Projects Recognizing the future potential of green hydrogen, They are actively developing projects in this domain, aiming to contribute to sustainable energy solutions beyond solar power. 5. Competition The solar energy industry is highly competitive and diverse. And Some of the major players in their industry include: i. Australian Premium Solar (India) Limited                     ii. K.P. Energy Limited iii. Zodiac Energy Limited 6. The Revenue has Increased from Rs.30 Crores in FY22 to Rs.54 Crores in FY24. 7. The EBITDA has Increased from 93 Lakhs in FY22 to 8 Crores in FY24. 8. The PAT has Increased from 36 Lakhs in FY22 to 5.7 Crores in FY24. 9. As per FY24, CFO/EBITDA is 0.98, and EPS is 6.23, 10. Market Capitalization is 106 Crores and P/E is 18.5x based on FY24.

Lead Manager of Trom Industries Limited IPO:

  1. Expert Global Consultants Private Limited

Registrar of Trom Industries Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Trom Industries Limited 4th Floor, 421, Pramukh Tangent, NR. Sargasan Cross Road, Gandhinagar - 382421 Phone: +91-079 29656678 Email: info@tromindustries.com Website: http://www.tromindustries.com/

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