The Prostarm Info Systems IPO has officially opened for subscription on May 27, 2025, attracting considerable attention from retail and institutional investors alike. The IPO is a Book Built Issue of ₹168.00 Crores, comprised entirely of a fresh issue of 160.00 lakh equity shares. The price band for this IPO has been set between ₹95 to ₹105 per equity share, and the face value of each share is ₹10. The issue will remain open until May 29, 2025, with the allotment date scheduled for May 30, 2025, and the tentative listing date set for June 3, 2025, on both the BSE and NSE.

Prostarm Info Systems Limited is a company specializing in the designing, manufacturing, assembling, and sale of Energy Storage and Power Conditioning Equipment, also referred to as Power Solution Products. Their extensive product line includes UPS systems, inverter systems, solar hybrid inverter systems, lift inverter systems, lithium-ion battery packs, servo-controlled voltage stabilizers (SCVS), isolation transformers, and other customized power solutions.

With an issue price of ₹105 per equity share, the estimated market capitalization of the company stands at ₹618.18 Crores post-issue. The lot size is 142 shares, requiring a minimum investment of ₹14,910 for retail investors. For High Net Worth Individuals (HNIs), the minimum application is 14 lots, translating to 1,988 shares, with an investment of ₹2,08,740.

The IPO is being managed by Choice Capital Advisors Private Limited as the Book Running Lead Manager, and KFin Technologies Limited is acting as the registrar to the issue.

Grey Market Premium (GMP) Indicates Positive Sentiment

As of May 22, 2025, the Grey Market Premium (GMP) of Prostarm Info Systems IPO stands at ₹17, which translates to a 16.19% potential gain over the upper price band of ₹105. The expected listing price, based on GMP, is around ₹122 per share. While the GMP offers an informal outlook, it's important to remember that Grey Market trading is unofficial and unregulated, and price discovery can only be validated upon listing on the stock exchange.

Day-Wise IPO Subscription Status

The live subscription status as of 10:30 AM on May 27, 2025, showed that the IPO was subscribed 0.51 times on Day 1. The response from investors in different categories including Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs) will continue to evolve through the subscription period.

Anchor Investor Participation

The company successfully raised ₹50.4 Crores from Anchor Investors at ₹105 per share, by allotting 48,00,000 equity shares. This pre-IPO placement reflects positive institutional interest and confidence in the company’s fundamentals and growth prospects. It is also indicative of a strong start for the IPO.

How to Check Prostarm Info Systems IPO Allotment

The IPO allotment status will be declared on May 30, 2025. Here's a quick step-by-step guide to check the Prostarm IPO allotment status:

1. Visit the IPO allotment status page on the registrar’s official website.

2. Select Prostarm Info Systems IPO from the dropdown list.

3. Enter your application number, PAN, or DP Client ID.

4. Submit the details to view your allotment status.

Objectives of the Issue

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹7,250.00 Lakh will go towards working capital requirements of the company.

2. ₹1,795.83 Lakh will be used for prepayment or repayment of certain outstanding borrowings.

3. The remaining funds will be allocated to inorganic growth through strategic acquisitions and general corporate purposes.

Financial Performance and Valuation Analysis

Prostarm Info Systems Limited has shown a consistent improvement in its financial performance over the past few years:

• Revenue from Operations:

  • FY22: ₹17,204.77 Lakh

  • FY23: ₹23,234.65 Lakh

  • FY24: ₹25,923.25 Lakh

  • 9M FY25 (till Dec 31, 2024): ₹27,027.08 Lakh

• EBITDA:

  • FY22: ₹1,657.79 Lakh

  • FY23: ₹2,914.79 Lakh

  • FY24: ₹3,662.25 Lakh

  • 9M FY25: ₹3,589.00 Lakh

• Profit After Tax (PAT):

  • FY22: ₹1,087.05 Lakh

  • FY23: ₹1,934.55 Lakh

  • FY24: ₹2,279.80 Lakh

  • 9M FY25: ₹2,210.76 Lakh

• Return Ratios:

  • ROCE (FY24): 32.41%

  • ROE (FY24): 32.09%

  • RoNW (FY24): 32.09%

• Earnings Per Share (EPS):

  • Pre-Issue FY24 EPS: ₹5.44

  • Post-Issue FY24 EPS: ₹3.96

  • Annualized EPS (latest): ₹6.94

• Price-to-Earnings (P/E) Ratio:

  • Pre-Issue P/E: 19.30x

  • Post-Issue P/E: 26.52x

  • Annualized P/E: 15.11x

  • Industry P/E: 149x

This analysis indicates that while the IPO appears fully priced, it still remains attractive based on earnings growth, profitability, and industry comparisons.

Expert Review and Recommendation

Backed by a strong management team, diverse product portfolio, and robust financials, Prostarm Info Systems has positioned itself as a competitive player in the power solution industry in India. The company is cash-positive, has shown steady top-line and bottom-line growth, and is leveraging the increasing demand for reliable power backup and energy storage systems across sectors like healthcare, manufacturing, commercial buildings, and data centers.

Given the reasonable valuation, high GMP, and the growth potential of the sector, the Prostarm IPO is recommended for those looking for listing gains. The anchor investor participation further validates the credibility and attractiveness of the offer.

Final Verdict

With its ₹168 Crore fresh issue, solid financial history, and a promising outlook in the energy storage and power conditioning space, Prostarm Info Systems IPO is an offer that blends growth and value. Investors seeking to benefit from a 16%+ potential listing gain, while also betting on a future-ready company, may find this IPO worthy of consideration.

As always, investors should assess their risk appetite, review financial documents, and consider market trends before making final decisions. However, based on the current insights, Prostarm Info Systems IPO stands out as a promising candidate for short-term gains and long-term portfolio inclusion.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

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