Prostarm Info Systems IPO opens today: Should you subscribe to it?

The initial public offering (IPO) of Prostarm Info Systems opens for bidding today, Tuesday, May 27. The company is selling its shares in the fixed price band of Rs 95-105 apiece, with a lot size of 142 equity shares and its multiples thereafter. The three-day bidding for the issue shall close for bidding on Thursday, May 29.

Prostarm Info Systems is looking to raise a total of Rs 168 crore via IPO, which is entirely a fresh share sale of 1.60 crore equity shares. The net proceeds from the issue shall be utilized towards funding working capital requirements; prepayment or repayment of certain borrowings; achieving inorganic growth and other strategic initiatives; and general corporate purposes.

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.

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. Chhattisgarh Investment, Astrone Capital, Steptrade Revolution Fund, Abundantia Capital, and Swyom India Alpha Fund were amongst eight institutional investors that participated in the anchor book.

Prostarm Info Systems offers customised and standard products, produced in-house and through contract manufacturers. Additionally, they sell third-party batteries and provide reverse logistics, end-of-life disposal services for UPS systems and batteries, and other related products. The company also executes rooftop solar power plant projects in India on an EPC basis.

The company serves diverse industries, including healthcare, aviation, research, BFSI, railways, defence, security, education, renewable energy, IT, and oil & gas. Its operations are supported by 21 branch offices and 2 storage facilities across 18 states and 1 union territory in India as of May 2025.

Prostarm Info Systems 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. Similarly, for the financial year ended on March 31, 2024, the company clocked a net profit of Rs 22.80 crore with a revenue of Rs 259.23 crore.

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.

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. Here's what a host of brokerages said on the IPO of Prostarm Info:

SBI Securities
Rating: Subscribe
Prostarm Info product portfolio finds applications across diverse industries such as data centers, renewable energy storage systems, power backup systems across commercial buildings, hospitals, airports and inverter systems for elevators. Its revenue, Ebitda and PAT have grown at a CAGR of 23 per cent, 49 per cent and 43 per cent over FY22-FY24, respectively, said SBI Securities.

"Growth in FY25E also appears robust based on the annualized numbers. At the upper price band of Rs 105, the stock is likely to trade at 20.2 times annualized FY25E EPS. The valuation appears decent when compared to peers. We recommend Subscribing to the Issue," it added.
 

Anand Rathi Shares & Stock Brokers
Rating: Subscribe for long-term
Prostarm Info Systems boasts a diverse and continually evolving range of products, product verticals, and a broad customer base. They have built a wide customer base across diverse industries by offering products with varied applications and remain focused on strengthening their relationships with domestic customers across all product verticals, said Anand Rathi.

"The issue is valued at 27.1 times its FY24 EPS. Its market cap-to-sales ratio stands at 2.4 times based on its FY24 earnings. They intend to explore opportunities to invest in additional facilities and expand their production capabilities, with a focus on designing, customizing, and integrating automation technologies into their operations," it said with a 'subscribe for long-term' tag.


Arihant Capital Markets
Rating: Subscribe for long-term
Prostarm Info Systems is catering over 700 customers and has 478 dealers and focused to increase further going forward. It strategically sources from India & China and partnering with third party manufacturers for products would improve cost efficiency. The company is focused on exports and has presence in Bangladesh, Africa, Middle East and Sri Lanka, said Arihant Capital.

"The IPO proceeds will be utilized for working capital, debt repayment and remaining will be utilized for acquisitions and general corporate purposes would lead to business growth going forward. The growing UPS, Lithium-Ion battery and Servo stabilizer market would provide business opportunities going forward. We are recommending a 'subscribe for long term' rating," it said
 

SMIFS
Rating: Subscribe
Low capacity utilization across its three Maharashtra-based plants offers substantial headroom for operating leverage as product complexity and in-house production scale up. Strong client retention, expanding institutional demand, and higher revenue share from high-margin segments such as lithium-ion battery packs and solar EPC solutions will drive both topline and bottom-line growth, said SMIFS.

"We recommend subscribe rating to the issue as Prostarm remains significantly undervalued relative to listed peers, despite delivering stronger financial performance and industry-leading margins, offering meaningful upside potential further as earnings scale due to capacity utilisation ramp up," it added.

Bajaj Broking
Rating: Subscribe for long-term
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.

ProfitMart Securities
Rating: Subscribe for long-term
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.