Prostarm Info Systems IPO: Issue fully subscribed on day 1; GMP suggests healthy gains

The initial public offering (IPO) of Prostarm Info Systems saw a strong demand from investors during the first day of the bidding process, majorly from individual bidders as the issue sailed through in the first two hours. The issue, which kicked off on Tuesday, May 27, shall close for bidding on Thursday, May 29.

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 169 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 1,54,91,348 equity shares, or 1.38 times, compared to the 1,12,00,000 equity shares offered for the subscription by 12.40 pm on Tuesday, May 27, 2025. The bidding for the issue shall continue for three-days.

The allocation for non-institutional investors (NIIs) was subscribed 2.18 times, while the portion reserved for retail investors saw a subscription of 1.82 times. However, the quota set aside for qualified institutional bidders (QIBs) was booked only one per cent as of the same time.

Incorporated in 2008, Navi-Mumbai-based Prostarm Info Systems is an Indian company specialising in designing, manufacturing, and selling energy storage and power conditioning equipment. It manufactures various power solution products, like UPS systems, inverter systems, solar hybrid inverter systems, lithium-ion battery packs and voltage stabilisers.

The grey market premium (GMP) of Prostarm Info Systems has risen amid the increasing interest in the issue. Last heard, the company was commanding a premium of Rs 25 per share in the unofficial market, suggesting a 24 per cent listing gains for the investors. The GMP has remained stable.

Analysts mostly have a positive view on this issue. Experience management, diversified portfolio, sound geographical reach, growth prospects and strong clientele are the major positives for this IPO. However, aggressive pricing and supply disruptions are the major concerns for the company.

Prostarm Info Systems offers investors a compelling play on India's expanding power backup and clean energy infrastructure. The company combines a strong financial track record, scalable business model, diversified offerings, and robust return ratios with a valuation that appears attractive relative to peers, said Gaurav Garg from Lemonn Markets Desk.

"Given the promising industry outlook, well-established operations, and reasonable pricing, we recommend subscribing to the IPO for investors with a medium to long-term investment horizon. The company is well-poised to benefit from structural tailwinds in energy storage and green energy solutions, backed by solid execution and a growing customer base," he said.

Prostarm Info Systems raised Rs 50.4 crore from anchor book as it allocated 48 lakh equity shares at a price of Rs 105 apiece. It reported a net profit of Rs 22.11 crore with a revenue of Rs 270.27 crore for the nine months ended on December 31, 2024. It clocked a net profit of Rs 22.80 crore with a revenue of Rs 259.23 crore for the financial year ended on March 31, 2024.

Prostarm Info has reserved 50 per cent of shares for the qualified institutional bidders (QIBs), while non-institutional investors (NIis) will have 15 per cent of the allocation in the issue. Retail investors will have 35 per cent of the quota reserved in this IPO. The company shall command a total market capitalization little more than Rs 618 crore.

Over 15 years of operations in dealing with Power Solution Products, it builds strong relationship/trust with about 40% of the 700 customers it caters to in FY24 are associated with the company for more than 3 years, said Capital Markets, which suggests to 'subscribe with caution' for the issue.

Choice Capital Advisors is the book-running lead manager of the Prostarm Info Systems IPO, while Kfin Technologies Limited is the registrar for the issue. Allotment for the issue is likely to be finalized by Friday, May 30, 2025, while shares of the company shall be listed on both BSE and NSE likely on Tuesday, June 3.