Trom Industries leaves Rs 4.50 crore solar allocation unused

Trom Industries Limited had used none of the Rs 4.50 crore allocated from its July 2024 initial public offering for a solar power plant as of September 30, 2026, while it reported full utilisation of Rs 24.3674 crore assigned to working capital and general corporate purposes.

How much of Trom Industries' IPO proceeds remained unused?

Trom Industries reported Rs 4.50 crore of unutilised net initial public offering, or IPO, proceeds at September 30, 2026. The entire unspent sum was the allocation for capital expenditure to set up a solar power plant, for which the utilisation statement recorded actual use of Rs 0.

The company raised Rs 31.3674 crore through its IPO on July 30, 2024. After Rs 2.50 crore of issue-related expenses, net proceeds available for the stated objects were Rs 28.8674 crore. The IPO comprised 27,27,600 equity shares issued at Rs 115 each, including a share premium of Rs 105 per share.

What did Trom Industries spend its other IPO proceeds on?

Trom Industries reported full use of the Rs 16.5256 crore allocated for working-capital requirements by September 30, 2026. The amount used matched the offer-document allocation, leaving no unutilised proceeds under that object.

The company also reported full utilisation of Rs 7.8418 crore assigned to general corporate purposes. Together, working capital and general corporate purposes accounted for Rs 24.3674 crore, which was all net IPO proceeds other than the Rs 4.50 crore solar-plant allocation.

The filing does not break down the Rs 16.5256 crore working-capital utilisation into inventory, receivables, supplier payments or other components. Separately, the half-year cash-flow statement reported increases in inventories of Rs 8.5965 crore and trade receivables of Rs 8.9091 crore, alongside an increase in trade payables of Rs 8.2447 crore; Trom Industries did not identify these movements as direct uses of IPO money.

Did Trom Industries report a deviation in IPO fund use?

Trom Industries reported no deviation or variation in the use of IPO funds for the half year ended September 30, 2026. It marked the solar power plant object as unmodified, with an original allocation of Rs 4.50 crore, no modified allocation and utilisation of Rs 0.

The filing distinguishes non-utilisation from a disclosed change of object. It states that deviation or variation can include a change in the purposes for which funds were raised, a difference between actual use and the amount originally disclosed, or a change in terms of a contract referred to in the fund-raising document. Despite no spending on the solar plant, Trom Industries answered “No” to whether a deviation or variation had occurred.

Trom Industries reported no audit-committee comments after review and no auditor comments in the deviation-or-variation statement. No monitoring agency was applicable to the IPO proceeds, according to the filing, so it contains no monitoring-agency assessment of the solar-plant expenditure timeline.

What does Trom Industries' utilisation certificate say about the solar allocation?

Trom Industries' utilisation certificate states that the Rs 4.50 crore capital-expenditure requirement was entirely unutilised at the September 30, 2026 reporting date. Milind Nyati & Co. LLP listed actual utilisation of Rs 0 and unutilised proceeds of Rs 4.50 crore for the capital-expenditure requirement.

The certificate, dated November 3, 2026, says the use of funds was in accordance with the objects stated in the offer document and complied with applicable regulatory requirements. It does not provide a construction timetable, plant location, expected generation capacity or revised date for use of the solar-plant allocation.

Trom Industries listed on the NSE Emerge small and medium enterprises platform on August 1, 2024, two days after the stated July 30, 2024 fund-raising date. By September 30, 2026, it had deployed Rs 24.3674 crore of net proceeds while retaining Rs 4.50 crore for the unspent capital-expenditure object.

How does the unspent IPO amount fit Trom Industries' reported cash flows?

Trom Industries reported cash and cash equivalents of Rs 26.4915 crore at September 30, 2026, down Rs 0.8734 crore from Rs 27.3649 crore at the beginning of the financial year. The filing does not reconcile this cash balance with the Rs 4.50 crore unutilised solar-plant allocation, so the two figures cannot be treated as the same measure.

For the half year ended September 30, 2026, the company reported net cash used in operating activities of Rs 7.0974 crore. That compared with net operating cash used of Rs 4.4433 crore for the year ended March 31, 2026, although the half-year and full-year periods are not directly comparable; net cash from investing activities was Rs 5.2763 crore and financing activities generated Rs 0.9476 crore in the half year.

The cash-flow statement records purchases of fixed assets of Rs 0.3885 crore for the half year ended September 30, 2026. Trom Industries did not state that this purchase related to the proposed solar power plant, while its IPO-proceeds table confirmed that Rs 0 from the dedicated Rs 4.50 crore allocation had been used for that object.

Conclusion

Trom Industries' IPO utilisation statement shows a split in deployment as of September 30, 2026: Rs 24.3674 crore had been used for working capital and general corporate purposes, while the Rs 4.50 crore designated for solar-plant capital expenditure remained unutilised. The company reported no modification to the object and no deviation or variation in its fund-use disclosure.

The unresolved matter is the timing and execution of the solar power plant. Trom Industries' November 3, 2026 utilisation certificate confirmed compliance with the stated IPO objects, but it disclosed no location, capacity, implementation schedule or revised deployment date for the Rs 4.50 crore allocation.