Trom Industries IPO Listing Thursday: GMP Hints at Gains, Check Allotment Status

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5 months ago

Trom Industries IPO Listing Thursday: GMP Hints at Gains, Check Allotment Status

The Trom Industries IPO, whose share allotment was finalized on Tuesday, is set to be listed on the NSE SME tomorrow, Thursday, August 1. Ahead of its listing, the company’s shares are trading at a huge 128.7 per cent premium in the grey market, signaling a significant listing gain tomorrow.

Overview of Trom Industries IPO

The 31.37-crore initial public offering (IPO) of Trom Industries Limited, which was open for public subscription between July 25 and July 29, received an astounding 459 times subscription in total, garnering bids for 83,28,02,400 shares against the 18,14,400 shares on offer. This overwhelming response is a testament to the strong investor confidence in the company.

Grey Market Premium (GMP) Insights

According to market observers, the unlisted shares of Trom Industries Ltd are trading Rs 148 higher in the grey market compared to its issue price. The Rs 148 grey market premium or GMP indicates a 128.7 per cent listing gain from the public issue. It is essential to note that GMP is based on market sentiments and is subject to change. Importantly, the NSE has capped the listing gains of SME IPOs at 90 per cent over the issue price.

What is Grey Market Premium?

The ‘grey market premium’ reflects investors’ willingness to pay more than the issue price for unlisted shares. This premium often serves as an indicator of the expected performance of the stock upon its listing.

IPO Details and Subscription Status

Price Band and Issue Details

The price band for the IPO was fixed at Rs 100-Rs 115 per share. The IPO consists solely of a new issue of 27.28 lakh shares.

Subscription Breakdown

According to the NSE data, the IPO received robust subscriptions across different investor categories:

Retail Quota: 483.14 times subscription
Non-Institutional Investors (NII): 751.90 times subscription
Qualified Institutional Buyers (QIB): 197.07 times subscription

The IPO saw a 13.93 times subscription on the first day of bidding (July 25) and a 35.37 times subscription on the second day (July 26).

Checking Allotment Status

Investors can check the IPO allotment status through the following steps:

Visit Kfin Technologies Ltd’s portal.
Select IPO ‘Trom Industries Limited’ from the menu.
Choose among — ‘application number’, ‘Demat Account No.’ or ‘PAN number’.
Enter PAN number, application number, or demat account number.
Enter Captcha.
Click on ‘Submit’ Button.

The Trom Industries IPO allotment status will be displayed on the screen.

Company Profile: Trom Industries Ltd

Established in 2011, Trom Industries Ltd is a solar EPC (engineering, procurement, and construction) firm that specializes in:

Residential solar rooftop systems
Industrial solar power plants
Ground-mounted solar power plants
Solar street lights

Financial Performance

In the financial year 2023-24, Trom Industries Ltd witnessed a remarkable growth in its financial performance:

Revenue jumped 125.98 per cent.
Profit After Tax (PAT) surged by an astonishing 1885.2 per cent.

Minimum Investment and Application Details

Investors were required to apply for at least 1,200 equity shares, and in multiples of this amount. Consequently, the minimum investment for retail investors was Rs 1,38,000, calculated as 1,200 shares (lot size) multiplied by Rs 115 (upper price band).

Utilization of IPO Proceeds

The capital raised from this IPO will be used for:

Funding capital expenditure requirements for the setup of a Solar Power Plant.
Meeting working capital requirements.
General corporate purposes.

Key Players in Trom Industries IPO

Expert Global Consultants Private Limited is serving as the book-running lead manager for the Trom Industries IPO. Kfin Technologies Limited is handling the issue’s registration, while Sunflower Broking is acting as the market maker.

Conclusion: A Promising Investment Opportunity

The Trom Industries IPO has captured the market’s attention with its significant subscription numbers and high grey market premium. As the company prepares for its listing on the NSE SME, investors are eagerly anticipating substantial listing gains. With a solid business foundation in the solar EPC sector and impressive financial performance, Trom Industries Ltd presents a promising investment opportunity.

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