Prostarm Info Systems Limited is a leading Indian company engaged in the design, manufacturing, assembly, sale, and servicing of Energy Storage Equipment and Power Conditioning Equipment, collectively known as “Power Solution Products.” Their product portfolio includes UPS systems, Inverter systems, Lift Inverter Systems, Solar Hybrid Inverter Systems, Lithium-Ion Battery Packs, Servo-Controlled Voltage Stabilizers (SCVS), and Isolation Transformers, among others. These products cater to the growing energy backup and power conditioning needs in India, a sector witnessing robust demand due to increasing electrification and renewable energy adoption.

IPO Details

The company is launching a Book Built Issue IPO amounting to ₹168.00 Crores, consisting entirely of a fresh issue of 1.60 crore shares. The IPO opens on May 27, 2025, and closes on May 29, 2025, with allotment expected on or about May 30, 2025. The shares will be listed on the BSE and NSE with the tentative listing date set for June 3, 2025.

The price band for the IPO is ₹95 to ₹105 per equity share, with a lot size of 142 shares. Retail investors need to invest a minimum of approximately ₹14,910, while High Net Worth Individuals (HNIs) must invest a minimum of 14 lots (1,988 shares) amounting to about ₹2,08,740.

Market Capitalisation

At the upper price band of ₹105 per share, the company’s market capitalization will be approximately ₹618.18 Crores, reflecting a reasonable valuation given the company’s financial growth.

Subscription Status

On the final day of the subscription period (May 29, 2025), the IPO was subscribed 97.20 times, indicating strong demand from investors across categories. This robust subscription rate signals high investor confidence in the company’s prospects.

Anchor Investors

The company raised ₹50.4 Crores from Anchor Investors at the upper price band of ₹105 per share, allotting 48 lakh shares. Anchor investors' participation reflects institutional confidence and adds credibility to the IPO.

Grey Market Premium (GMP)

The Grey Market Premium stands at around ₹17, suggesting expected listing gains of about 16.19% over the IPO price. However, investors should note that GMP is unofficial and depends on supply-demand dynamics in the unregulated grey market. GMP is for informational purposes only and does not guarantee listing gains.

Company Financial Performance

Prostarm Info Systems has demonstrated steady revenue growth over recent years, with revenues of ₹270.27 Crores in the nine months ending Dec 31, 2024, and ₹259.23 Crores and ₹232.35 Crores in fiscal years 2024 and 2023 respectively. EBITDA and PAT have also shown healthy upward trends, indicating operational efficiency and profitability.

• EBITDA for FY24: ₹36.62 Crores

• PAT for FY24: ₹22.80 Crores

• Pre-issue EPS: ₹5.44; Post-issue EPS: ₹3.96

• Pre-issue P/E ratio: 19.30x; Post-issue P/E ratio: 26.52x (Industry average: 149x)

• ROCE and ROE around 32%, indicating strong returns on capital employed and equity.

Use of IPO Proceeds

The net proceeds from the IPO will be used mainly for:

1. Funding working capital requirements – ₹72.50 Crores

2. Prepayment/repayment of certain outstanding borrowings – ₹17.96 Crores

3. Inorganic growth via acquisitions and strategic initiatives and for general corporate purposes.

These uses are aimed at strengthening the company’s financial position and supporting its growth ambitions.

Management and Leadership

The company is led by Mr. Ram Agarwal, Promoter, Director, and CEO, who has over 16 years of experience in power backup solutions. The promoters remain actively involved in operations, providing strategic direction and leadership vital for sustained growth.

Investor Recommendation

Given Prostarm Info Systems’ strong financials, experienced management, and promising sector fundamentals, the IPO is priced reasonably compared to industry standards. The healthy GMP and strong subscription trend suggest potential listing gains. Investors looking for exposure to the power backup and energy storage sector may consider applying to this IPO

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