Prostarm Info Systems Limited is a key player in the design, manufacture, assembly, sale, service and supply of Energy Storage Equipment and Power Conditioning Equipment in India. Their product portfolio includes UPS systems, Inverter systems, Lift Inverter systems, Solar Hybrid Inverter systems, Lithium-Ion Battery Packs, Servo-Controlled Voltage Stabilizers (SCVS), Isolation Transformers, and other related power solution products.
The company is coming out with an Initial Public Offering (IPO) as a Book Built Issue amounting to ₹168.00 crore, entirely consisting of a fresh issue of 160 lakh equity shares. The subscription window opens on May 27, 2025, and closes on May 29, 2025. The allotment is expected to be finalised on or about May 30, 2025. The shares are proposed to be listed on both BSE and NSE with a tentative listing date of June 3, 2025.
The price band for the IPO is fixed between ₹95 and ₹105 per equity share. At the upper band of ₹105, the market capitalisation of Prostarm Info Systems will be approximately ₹618.18 crore. The IPO lot size is 142 shares, requiring a minimum retail investment of ₹14,910. High Net Worth Individuals (HNIs) must apply for a minimum of 14 lots (1,988 shares), amounting to ₹2,08,740.
Choice Capital Advisors Private Limited is the book running lead manager, while KFin Technologies Limited is the registrar for the issue.
Financial Performance and Growth
Prostarm Info Systems has demonstrated steady financial growth over recent years. Revenues from operations increased from ₹17,204.77 lakh in 2022 to ₹23,234.65 lakh in 2023, ₹25,923.25 lakh in 2024, and ₹27,027.08 lakh for the nine months ended December 31, 2024. EBITDA rose from ₹1,657.79 lakh in 2022 to ₹2,914.79 lakh in 2023, ₹3,662.25 lakh in 2024, and ₹3,589.00 lakh for the nine months ended December 2024. Profit after tax also grew from ₹1,087.05 lakh in 2022 to ₹1,934.55 lakh in 2023, ₹2,279.80 lakh in 2024, and ₹2,210.76 lakh for the nine months ended December 2024.
Key financial metrics include a pre-issue Earnings Per Share (EPS) of ₹5.44 and a post-issue EPS of ₹3.96 for FY24. The pre-issue Price to Earnings (P/E) ratio stands at 19.30 times, increasing to 26.52 times post-issue, both well below the industry P/E ratio of 149 times. The company reports a Return on Capital Employed (ROCE) of 32.41%, Return on Equity (ROE) of 32.09%, and Return on Net Worth (RoNW) of 32.09% for FY24. The annualised EPS based on the latest data is ₹6.94 with a P/E ratio of 15.11 times, indicating a fully priced IPO.
Management and Leadership
The company is led by Promoter, Director and Chief Executive Officer Mr Ram Agarwal, who brings over sixteen years of expertise in the power backup solutions sector. The promoters remain actively engaged in the business operations, providing strong leadership and vision critical for sustained growth.
Grey Market Premium and Listing Outlook
The Grey Market Premium (GMP) for Prostarm Info Systems IPO is estimated at ₹17, signalling potential listing gains of around 16.19%. However, GMP reflects unofficial demand and supply and should only be used for educational purposes as actual listing price discovery occurs on the stock exchanges.
Given the solid financials, experienced leadership and reasonable valuation, the IPO may attract investors looking for listing gains. Caution is advised to carefully analyse risks and fundamentals before investing.
For further assistance, investors can reach out to
Choice Capital Advisors Private Limited (Book Running Lead Manager)
KFin Technologies Limited (Registrar)
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