Prostarm Info Systems is a prominent player in the Indian energy storage and power conditioning equipment sector. The company designs, manufactures, assembles, sells, and services a wide range of Power Solution Products such as UPS systems, inverter systems, lift inverter systems, solar hybrid inverters, lithium-ion battery packs, servo-controlled voltage stabilizers (SCVS), and isolation transformers.

The company has announced a Book Built Issue IPO amounting to ₹168 Crores consisting entirely of a fresh issue of 16 crore equity shares. The IPO subscription period runs from May 27, 2025, to May 29, 2025, with allotment expected on May 30, 2025. The shares are set to be listed on both the BSE and NSE with a tentative listing date around June 3, 2025.

The IPO price band is fixed between ₹95 to ₹105 per equity share, implying a market capitalization of around ₹618.18 Crores at the upper price band. The minimum lot size is 142 shares, meaning retail investors need to invest at least ₹14,910, while high-net-worth individuals (HNIs) must invest in multiples of 14 lots (1,988 shares) totaling ₹2,08,740.

The IPO is managed by Choice Capital Advisors Private Limited as the book running lead manager and KFin Technologies Limited as the registrar.

Grey Market Premium and Subscription Status

The Grey Market Premium (GMP) for Prostarm Info Systems IPO stands at ₹17, indicating potential listing gains of over 16%. However, GMP reflects informal market sentiment and is not an official indicator of listing price.

As of 11:00 AM on May 29, 2025, the IPO was subscribed 21.33 times, showing robust investor demand on the final day of subscription.

Anchor Investors

Prostarm Info Systems raised ₹50.4 Crores from anchor investors subscribing at the upper price band of ₹105 per share. A total of 4.8 million equity shares were allocated to anchor investors, a significant portion of the Qualified Institutional Buyers (QIBs) quota.

IPO Objectives

The company plans to deploy the IPO proceeds towards:

1. ₹72.50 Crores for working capital requirements

2. ₹17.96 Crores for repayment/prepayment of outstanding borrowings

3. Inorganic growth via acquisitions and strategic initiatives

4. General corporate purposes

Financial Performance Review

Prostarm Info Systems has demonstrated steady revenue growth with figures as follows (in ₹ Lakh):

• FY 2022: 17,204.77

• FY 2023: 23,234.65

• FY 2024: 25,923.25

• Period ended Dec 31, 2024: 27,027.08

EBITDA and PAT have also shown consistent improvements:

• EBITDA (FY 2024): ₹3,662.25 Lakh

• PAT (FY 2024): ₹2,279.80 Lakh

Key metrics for FY24 show a pre-issue EPS of ₹5.44 and a post-issue EPS of ₹3.96. The pre-issue P/E ratio is 19.30x, post-issue P/E is 26.52x, compared to an industry average P/E of 149x, reflecting reasonable valuation. Return on Capital Employed (ROCE) stands strong at 32.41%, with Return on Equity (ROE) at 32.09%.

Management and Leadership

The company is led by Ram Agarwal, Promoter, Director, and CEO, who brings over 16 years of expertise in power backup solutions. The promoters maintain active operational involvement, contributing to Prostarm’s steady business growth and strategic vision.

Investment Outlook

With strong financials, experienced management, and a promising market for energy storage and power conditioning equipment, the IPO is viewed favorably by market watchers. The GMP of ₹17 suggests positive listing prospects.

Investors interested in the power backup and renewable energy segment may consider applying to Prostarm Info Systems IPO.

Disclaimer: The information provided is for educational purposes only and does not constitute investment advice. Please consult a financial advisor before making investment decisions.

The Upcoming IPOs in this week and coming weeks are 3B Films, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals, Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems.

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