The Prostarm Info Systems IPO is set to open for public subscription on May 27, 2025, offering an investment opportunity in one of India’s rising names in the Power Solution Products industry. The IPO is structured as a Book Built Issue amounting to ₹168.00 Crores, comprising an entirely Fresh Issue of 160.00 Lakh Shares. The subscription window will remain open till May 29, 2025, with the allotment expected to be finalized on May 30, 2025, and the shares listed on the BSE and NSE by June 3, 2025.

Overview of Prostarm Info Systems Limited

Prostarm Info Systems Limited is actively engaged in the designing, manufacturing, assembling, sale, service, and supply of Energy Storage Equipment and Power Conditioning Equipment in India. Their wide range of Power Solution Products includes:

• UPS Systems

• Inverter Systems

• Lift Inverter Systems

• Solar Hybrid Inverter Systems

• Lithium-Ion Battery Packs

• Servo-Controlled Voltage Stabilizers (SCVS)

• Isolation Transformers

The company has carved a significant niche in India’s growing demand for power backup solutions. Its cutting-edge product range caters to commercial, industrial, and residential clients, thus giving it an edge in a rapidly transforming energy landscape.

Prostarm Info Systems IPO Details

The share price band for the Prostarm Info Systems IPO is fixed at ₹95 to ₹105 per equity share. With the upper price band of ₹105, the Market Capitalisation of the company post-issue is estimated to be ₹618.18 Crores.

The lot size for the IPO is 142 shares, which means retail investors will have to invest a minimum of ₹14,910, while High-Net-Worth Individuals (HNIs) are required to apply for 14 lots (1,988 shares), amounting to an investment of ₹2,08,740.

Grey Market Premium (GMP)

The current Grey Market Premium (GMP) for Prostarm Info Systems IPO is ₹14, which reflects an expected listing price of ₹119 against the issue price of ₹105, offering a 13.33% potential premium. However, it is essential to understand that GMP is not an official or regulated metric. It is based on unorganised market demand and supply and should be used for educational and informational purposes only.

Anchor Investors

Prostarm Info Systems has already raised ₹50.4 Crores from Anchor Investors ahead of the IPO opening, at the upper price band of ₹105 per share. A total of 48,00,000 equity shares have been allotted to institutional investors, signalling confidence from major market participants.

IPO Objectives

The Net Proceeds from the IPO are intended to be utilised as follows:

1. ₹7,250.00 Lakh for funding working capital requirements of the company.

2. ₹1,795.83 Lakh for prepayment or repayment of certain borrowings.

3. Balance funds for inorganic growth through acquisitions and general corporate purposes.

Financial Highlights

Prostarm Info Systems has shown consistent growth over the past few years:

• Revenue from operations:

  • FY22: ₹17,204.77 Lakh

  • FY23: ₹23,234.65 Lakh

  • FY24: ₹25,923.25 Lakh

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

• EBITDA:

  • FY22: ₹1,657.79 Lakh

  • FY23: ₹2,914.79 Lakh

  • FY24: ₹3,662.25 Lakh

  • Dec 31, 2024: ₹3,589.00 Lakh

• Profit After Tax (PAT):

  • FY22: ₹1,087.05 Lakh

  • FY23: ₹1,934.55 Lakh

  • FY24: ₹2,279.80 Lakh

  • Dec 31, 2024: ₹2,210.76 Lakh

Valuation Metrics

At the upper price band of ₹105, the pre-issue EPS for FY24 is ₹5.44, and the post-issue EPS is ₹3.96. Based on this, the pre-issue P/E ratio stands at 19.30x, and the post-issue P/E ratio is 26.52x.

In comparison, the industry P/E average is around 149x, making Prostarm IPO relatively reasonably priced, albeit at the higher end of its valuation bracket.

Additional metrics:

• ROCE (FY24): 32.41%

• ROE (FY24): 32.09%

• RoNW (FY24): 32.09%

• Annualised EPS based on recent data: ₹6.94

• Annualised PE Ratio: 15.11x

These indicators highlight a well-performing company, but the pricing does reflect a fair valuation already baked in, suggesting limited listing gains.

IPO Allotment Date & How to Check Allotment Status

Allotment of shares is expected to be finalized by Friday, May 30, 2025. Investors can check the status on the registrar's website – KFin Technologies Limited – by following these steps:

1. Visit the IPO allotment page.

2. Select Prostarm Info Systems IPO from the dropdown.

3. Enter Application Number, PAN, or DP Client ID.

4. Submit and view the allotment status.

Listing Date

The shares are tentatively set to be listed on the NSE and BSE on Tuesday, June 3, 2025.

Risk Analysis and Recommendation

While Prostarm Info Systems shows strong financial fundamentals, industry-leading ROE/ROCE, and a diverse portfolio in Energy Storage Equipment and Power Conditioning Products, investors must weigh the valuation risks.

The IPO appears to be fairly priced and is not underpriced when compared to its peers. The GMP suggests a modest listing gain, but it is unreliable as a long-term indicator.

Therefore, the IPO may not be suitable for listing gains, and risk-averse investors are advised to avoid. However, long-term investors who are confident in the power solution sector’s growth story may consider entering at the right valuation post-listing.

Final Verdict

The Prostarm Info Systems IPO offers a compelling growth narrative backed by strong financials and a visionary leadership team. With a ₹168 Crore Book Built Issue, ₹14 Grey Market Premium, and solid operational history, it has all the ingredients of a promising listing. However, investors should evaluate the listing risk, especially as the IPO is fully priced with limited short-term upside.

As always, conduct thorough due diligence, consider your risk appetite, and assess your investment horizon before making any decisions related to IPO participation.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning..

The Current active IPO are Aegis Vopak Terminals, Schloss Bangalore, Unified Data - Tech Solutions.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.