Prostarm Info Systems Limited is a notable player in the Indian energy storage and power conditioning sector, engaged in the design, manufacturing, assembling, sale, service, and supply of Power Solution Products. These products include UPS systems, Inverter systems, Lift Inverter Systems, Solar Hybrid Inverter Systems, Lithium-Ion Battery Packs, Servo-Controlled Voltage Stabilizers (SCVS), Isolation Transformers, among others. The company’s portfolio caters to the increasing demand for reliable power backup and energy management solutions in India.

IPO Details

Prostarm Info Systems has announced a Book Built Issue IPO amounting to ₹168.00 Crores, comprising a fresh issue of 16 million shares. The IPO opens for subscription on May 27, 2025, and closes on May 29, 2025. The allotment of shares is expected to be finalized on May 30, 2025, with the tentative listing on BSE and NSE scheduled for June 3, 2025.

The price band is fixed between ₹95 and ₹105 per equity share. At the upper end of the price band, the company’s market capitalization will be approximately ₹618.18 Crores. The IPO lot size is set at 142 shares, with a minimum investment of ₹14,910 for retail investors. High-Net-Worth Individuals (HNIs) are required to 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 for the issue, and KFin Technologies Limited is the registrar.

Grey Market Premium (GMP) and Market Sentiment

The Grey Market Premium for Prostarm Info Systems IPO is ₹17, suggesting potential listing gains of over 16% on the IPO price of ₹105. However, GMP trading is unofficial and unregulated, thus not reliable for final price discovery. Investors are advised to consider GMP only as an educational reference and rely primarily on the company's fundamentals and IPO valuation.

IPO Subscription Status (As of May 28, 2025)

By the second day of subscription, the IPO has been subscribed 5.49 times, reflecting strong investor interest. The demand is expected to intensify as the subscription period nears closure.

Anchor Investor Participation

Prostarm Info Systems successfully raised ₹50.4 Crores from Anchor Investors at ₹105 per share. A total of 48 lakh equity shares were allotted to anchor investors, which represents a positive signal of institutional confidence in the IPO.

Financial Performance and Valuation Highlights

• Revenues have shown consistent growth from ₹17,204.77 Lakhs in FY22 to ₹27,027.08 Lakhs in the nine months ended Dec 31, 2024.

• EBITDA increased steadily from ₹1,657.79 Lakhs in FY22 to ₹3,589.00 Lakhs in the latest period.

• Profit After Tax rose from ₹1,087.05 Lakhs in FY22 to ₹2,210.76 Lakhs for the nine months ended Dec 2024.

• The pre-issue EPS is ₹5.44, with a post-issue EPS of ₹3.96 for FY24.

• The pre-issue Price to Earnings (P/E) ratio stands at 19.30x and post-issue at 26.52x, which is low compared to the industry average P/E of 149x, indicating reasonable valuation.

• Return on Capital Employed (ROCE) is 32.41%, and Return on Equity (ROE) is 32.09%, reflecting strong operational efficiency.

The company’s solid financial track record and reasonable valuation metrics suggest that the IPO is priced fairly with potential for listing gains.

IPO Proceeds Utilization

The net proceeds of the IPO will be used for:

1. Working Capital Requirements: ₹72.50 Crores to support operational needs and inventory management.

2. Debt Repayment: ₹17.96 Crores for prepayment or repayment of existing borrowings to reduce financial costs.

3. Strategic Growth: Funds will support inorganic growth through acquisitions and other corporate purposes.

How to Check Prostarm Info Systems IPO Allotment Status

Investors can check their allotment status from May 30, 2025, onwards via the registrar's website. The steps include:

• Visiting the IPO allotment status page.

• Selecting "Prostarm Info Systems Limited IPO" from the dropdown list.

• Entering the application number, PAN, or DP Client ID.

• Submitting the details to view the allotment result.

Conclusion and Recommendation

Prostarm Info Systems Limited offers investors a chance to participate in a fast-growing sector of energy storage and power conditioning in India. With a strong management team, consistent revenue and profit growth, reasonable valuation, and positive market response, the IPO is likely to provide attractive listing gains. The current Grey Market Premium of ₹17 supports this outlook.

Investors seeking exposure to power backup and energy storage solutions should consider applying to the Prostarm Info Systems IPO during the subscription window from May 27 to May 29, 2025.

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, Aegis Vopak Terminals, Schloss Bangalore.

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