Prostarm Info Systems IPO
IPO Details
Prostarm Info Systems IPO is a bookbuilding of ₹168 Crore. The issue is entirely a fresh issue of ₹168 Crore and an offer for sale of Nil.
Prostarm Info Systems IPO opens for subscription on 2025-05-27 and closes on 2025-05-29. The allotment is expected to be finalized on 2025-05-30. The IPO will be listed on BSE, NSE with tentative listing date as 2025-06-03.
Price band is set at ₹95 to ₹105 per share. The minimum lot size for application is 142 shares (₹13490). It is suggested to bid at the cutoff price to avoid oversubscription, which is about ₹14910.
IPO Timeline
Company Overview
Prostarm Info Systems IPO Details
Prostarm Info Systems Limited is a Navi Mumbai-based company specializing in power solutions and energy storage. Established in 2008, the company has a significant presence across India, offering a range of products under the ‘Prostarm’ brand.
Company Overview
Prostarm operates three manufacturing facilities in Maharashtra and maintains a network of 22 branch offices and 2 storage facilities across 17 states and one union territory in India. The company is ISO certified and caters to various industries, including healthcare, aviation, research, BFSI, railways, defense, security, education, renewable energy, information technology, and oil & gas.
Business Segments
- Power Solutions: Manufacturing of UPS systems, inverter systems, lift inverter systems, solar hybrid inverter systems, lithium-ion battery packs, servo-controlled voltage stabilizers, and isolation transformers.
- Solar EPC Projects: Undertaking rooftop solar photovoltaic power plant projects on an EPC basis.
- After-Sales Services: Providing annual maintenance contracts (AMCs) and other support services.
Financial Performance
| Particulars | FY 2022 | FY 2023 | FY 2024 | Dec 2024 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 172.05 | 232.35 | 259.23 | 270.27 |
| Profit After Tax (₹ Cr) | 10.87 | 19.35 | 22.80 | 22.11 |
| Net Worth (₹ Cr) | 40.95 | 61.00 | 84.30 | 107.24 |
| Reserves & Surplus (₹ Cr) | 31.87 | 18.13 | 41.42 | 64.37 |
| Total Borrowings (₹ Cr) | 3.21 | 24.85 | 43.47 | 60.37 |
| Assets (₹ Cr) | 98.03 | 155.39 | 203.05 | 230.04 |
IPO Details
- Issue Size: ₹168 Crore
- Fresh Issue: ₹168 Crore
- Offer for Sale: Nil
- Price Band: ₹95-₹105 per share
- Lot Size: 142 shares
- Minimum Investment: ₹14,910 (at upper price band)
- Listing On: NSE and BSE
IPO Objectives
- Funding working capital requirements
- Repayment of debt
- Acquisition of further stake in subsidiary to make it a wholly owned subsidiary
- Inorganic growth opportunities
- Strategic initiatives
- General corporate purposes
Subscription Details
| Category | Allocation | Subscription |
|---|---|---|
| QIB | 50% | N/A |
| NII | 15% | N/A |
| Retail | 35% | N/A |
| Total | 100% | N/A |
Note: Subscription details will be updated post-IPO closure.
Key Strengths
- Diverse product portfolio catering to multiple industries
- Established client base with over 700 clients, including L&T, Tata Power, and Bajaj Finance
- Nationwide presence with extensive branch and service network
- ISO-certified manufacturing facilities
- Experienced management team with a strong track record
Risk Factors
- Dependence on key clients for a significant portion of revenue
- Exposure to fluctuations in raw material prices
- Intense competition in the power solutions industry
- Regulatory changes affecting the energy sector
- Risks associated with project execution in EPC contracts
Lead Managers
- Choice Capital Advisors Pvt Ltd
Registrar
- KFin Technologies Ltd
GMP Trends
The Grey Market Premium (GMP) for Prostarm Info Systems IPO is currently ₹15, indicating a premium of approximately 14.29% over the upper price band.
Expert Opinion
Analysts view Prostarm Info Systems as a company with solid fundamentals and a diversified product range. The company’s consistent financial growth and expansion plans position it well for future growth. Investors looking for exposure in the power solutions and energy storage sector may find this IPO appealing.
Disclaimer: Investors are advised to read the Red Herring Prospectus (RHP) and consult financial advisors before making investment decisions.
Business Segments
Information about business segments will be available soon.
Financial Performance
| Particulars | FY 2022 | FY 2023 | FY 2024 | FY Dec 2024 |
|---|---|---|---|---|
| assets | ₹98.03 Cr | ₹155.39 Cr | ₹203.05 Cr | ₹230.04 Cr |
| net worth | ₹40.95 Cr | ₹61 Cr | ₹84.3 Cr | ₹107.24 Cr |
| pat | ₹10.87 Cr | ₹19.35 Cr | ₹22.8 Cr | ₹22.11 Cr |
| reserves and surplus | ₹31.87 Cr | ₹18.13 Cr | ₹41.42 Cr | ₹64.37 Cr |
| revenue | ₹172.05 Cr | ₹232.35 Cr | ₹259.23 Cr | ₹270.27 Cr |
| total borrowing | ₹3.21 Cr | ₹24.85 Cr | ₹43.47 Cr | ₹60.37 Cr |
Additional Information
The proceeds from the IPO will be used for:
- Expansion of manufacturing facilities
- Debt repayment
- General corporate purposes
Information about key strengths will be available soon.
Information about risk factors will be available soon.
| Category | Allocation | Subscription |
|---|---|---|
| QIB | 50% | N/A |
| NII | 15% | N/A |
| Retail | 35% | N/A |
| Total | 100% | N/A |
Industry analysts are positive about the company's growth prospects given its strong financial performance, diversified product portfolio, and expansion plans. The IPO is expected to receive good response from investors looking for exposure to the sector.
Grey Market Premium
*Expected Premium is derived from market rumors. It is not a guaranteed indicator of the actual listing price.
IPO Quick Info
Market Lot
IPO Details
Lead Managers
- Axis Capital Limited
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
Registrar
Link Intime India Private Limited
