Prostarm Info Systems IPO: Check day 3 subscription status as GMP falls 20%

The initial public offering (IPO) of Prostarm Info Systems saw a strong demand from investors during the third and final day of the bidding process, across all categories of investors. The issue was booked over 3.6 per cent on day one and ended day two with nearly 12.75 times bidding.

Prostarm Info Systems is selling its shares in the price band of Rs 95-105 apiece. Investors can apply for a minimum of 142 shares and its multiples thereafter. It is looking to raise Rs 168 crore via IPO, which is entirely a fresh share sale of up to 1,60,00,000 equity shares.

According to the data, the investors made bids for 48,94,83,514 equity shares, or 43.20 times, compared to the 1,12,00,000 equity shares offered for the subscription by 1.15 pm on Thursday, May 29, 2025. The bidding for the issue, which kicked off on Tuesday 27, shall conclude today.

The allocation for non-institutional investors (NIIs) was subscribed a solid 124.50 times, while the portion reserved for retail investors saw a subscription of 26.35 times. However, the quota set aside for qualified institutional bidders (QIBs) was booked 13.48 times as of the same time.

Based in Navi Mumbai, Prostarm Info Systems is specialising in energy storage and power conditioning equipment, has earmarked 50% of the shares for qualified institutional bidders, 15% for non-institutional investors, and 35% for retail investors. Post-IPO, the market capitalisation is expected to exceed Rs 618 crore. Choice Capital Advisors is the book-running lead manager, and Kfin Technologies Limited is serving as the registrar.

Established in 2008, Prostarm Info Systems manufactures a range of power solution products including UPS systems, inverter systems, and lithium-ion battery packs. For the nine months ending December 31, 2024, the firm reported a net profit of Rs 22.11 crore on revenue of Rs 270.27 crore.

The company's net profit for the financial year ending March 31, 2024, was Rs 22.80 crore, indicating consistent growth. Analysts point to the experienced management, a diverse product portfolio, and a comprehensive geographical reach as significant strengths. However, aggressive pricing strategies and supply disruptions are noted concerns.

Prostarm is engaged in supply of energy storage equipment and power conditioning equipment along with related services, said Bajaj Broking. "The sudden boost in its bottom lines from FY23 onward is on account of its ability to provide all related services under one roof. Based on its financial data, the IPO appears fully priced. Investors may lap it up for long term," it said.

Prostarm Info Systems has raised Rs 50.4 crore from its anchor book, allocating 48 lakh equity shares at a price of Rs 105 each. This forms a substantial part of the anticipated market cap post-IPO. The grey market premium (GMP) for Prostarm has decreased by 20%, currently at Rs 20 per share, suggesting a potential 19% listing gain. Initially, the GMP was Rs 25 on the first day of bidding.

Prostarm Info Systems promoters have significant industry experience and have been instrumental in the company's consistent growth. The management team's combined expertise and experience are also a significant asset going ahead, said ProfitMart Securities in its IPO note.

"We are confident that Prostarm Info Systems Limited will deliver consistent performance and provide an excellent investment opportunity for investors with a long-term horizon. Hence, we recommend 'subscribe' for long-term investment," it added.

Market analysts generally hold a positive view of the IPO, highlighting a robust client base and strong growth prospects. The company's pricing strategies and market positioning will be crucial for its performance. The IPO has seen notable interest across various investor categories, reflecting a well-balanced allocation strategy aimed at inclusive participation.

The IPO opened earlier in May and will conclude on May 30, 2025. The basis of allotment is expected to be finalised shortly thereafter, with shares likely to be credited to demat accounts by June 2, and listing expected on June 3, 2025.