Prostarm Info Systems IPO: Prostarm Info Systems company is the master of power solutions, which manufactures UPS, inverters, lithium-ion batteries, and solar inverters. Its IPO opened on May 27, 2025, and it is planning to raise ₹ 168 crores.
If you are thinking of investing money in an IPO, then this article is your guide. Let’s understand what Prostarm Info Systems is, why its IPO is special, how much money will be required, and how to apply. Along with this, I will also tell you the risk so that you can decide after thinking. Let’s get into the details!
What is Prostarm Info Systems?
Prostarm Info Systems is a Navi Mumbai-based company that has been doing power solutions business since 2008. The company manufactures Energy Storage and Power Conditioning Equipment, which, in simple terms, means products for power backup and smooth power supply. Their products include:
- UPS Systems: For power backup in computers, offices, and hospitals.
- Inverter Systems: To solve the problem of power cuts for homes and offices.
- Lithium-ion battery packs: For electric vehicles and solar systems.
- Solar Hybrid Inverters: To use solar power.
- Voltage Stabilizers: To control power fluctuations.
The company’s brand name is Prostarm, and it works in a number of sectors like healthcare, banking, aviation, railways, defense, and renewable energy. They have 700+ clients, such as Larsen & Toubro, Tata Power, and Bajaj Finance. They are spread across India with 22 branch offices and 478+ dealers.
Prostarm Info Systems IPO Shares Issue
The Prostarm Info Systems IPO will open on May 27, 2025, and close on May 29, 2025. This is a Mainboard IPO, which will be listed on BSE and NSE. The company is issuing 1.6 crore new shares, and there is no Offer for Sale (OFS). The plan is to raise a total of ₹168 crore.
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Key details of the Prostarm Info Systems IPO:
- Price band: ₹95 to ₹105 per share.
- Lot size: 142 shares (i.e. minimum investment of ₹14,910).
- Total issue size: ₹168 crore.
- Listing date: June 3, 2025 (Tentative).
- Allotment date: May 30, 2025 (Tentative).
- Retail quota: 35% (QIB: 50%, NII: 15%).
The company will use this money:
- ₹72.5 crore: For working capital.
- ₹17.95 crore: To repay debt.
- ₹9 crore: To fully acquire the subsidiary.
- Remaining: For acquisitions, strategic initiatives, and general corporate purposes.
Prostarm Info Systems IPO Subscription Status
As of day one (May 27, 2025), the IPO was subscribed 2.5 times. Retail investors applied 3.15 times, NII 4.27 times, and QIB 0.02 times.
Prostarm Info Systems IPO GMP
The GMP was ₹25 on May 27, meaning the shares can be listed at ₹130 (₹105 + ₹25). Meaning, there can be a listing gain of 23.81%. But do not blindly trust the GMP – it depends on market sentiment and can change.
Prostarm Info Systems Business
- Strong business: The company focuses on power solutions, which are in great demand in healthcare, IT, and renewable energy these days.
- Growing market: The market for solar energy and lithium-ion batteries is growing rapidly in India. Prostarm can take advantage of this growth.
- Financial growth: Revenue was ₹232 crore in FY23, which increased to ₹259 crore in FY24. Profit also increased from ₹19.3 crore to ₹22.8 crore. ₹270 crore revenue and ₹22.11 crore profit in 9 months of FY25. Diverse clients: 700+ clients and big names like the Airports Authority of India, NTPC, and Railtel.
- Low valuation: P/E ratio 19.3x (FY25 EPS at ₹5.44), which is much lower than the industry standard of 149x. That means the IPO is fairly priced.
Understand the risk!
Every IPO has risk, and Prostarm also has its drama:
- Cash flow issue: Cash flow has been negative for the last 3 years.
- High receivables: 112 days receivable period, which means it takes time to get payment from clients.
- Dependency on top clients: 60% of revenue comes from top 5 clients. If these clients leave, there could be a problem.
- Third-party dealers: Payment delays or info glitches with dealers can impact the business.
- Market Risk: Stock market volatility and oversubscription may reduce listing gains.
How to Apply Prostarm Info Systems IPO?
- Demat Account: Open a demat account with a broker like Zerodha, Upstox, 5Paisa, or Angel One.
- IPO Section: Go to the ‘IPO’ section on the broker app/website.
- Select Prostarm IPO: Enter lot size (minimum 142 shares) and price (₹105 cut-off price recommended).
- UPI/ASBA: Enter UPI ID or use ASBA (Application Supported by Blocked Amount) from your bank account.
- Submit: Submit the application and approve the payment mandate on the UPI app.
Apply at the cut-off price to increase the chances of getting shares even in oversubscription. The minimum investment is ₹14,910. Retail investors can apply for a maximum of 13 lots (1846 shares, ₹1,93,830).
Conclusion:
Prostarm Info Systems IPO is a better option for long-term investors. The company’s business is solid, and the scope of renewable energy is huge in India. However, there are risks like cash flow and client dependency. If you want short-term listing gains, then you can get 20-25% return as per ₹25 GMP. But in the long term, the company’s growth and Decide after looking at the financial performance. The deadline is May 29, 2025, at 5 PM. And yes, risk is inevitable in the stock market, so invest wisely.
Disclaimer: Marketread provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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