Prostarm Info Systems make a strong Dalal Street debut; stock list at 19% premium on NSE

Shares of Prostarm Info Systems made a strong debut at Dalal Street on Tuesday as the stock was listed at Rs 125 on BSE, a premium of 19.04 per cent over its issue price of Rs 105. Similarly, the stock was listed with a premium 14.28 per cent over the given issue price at Rs 120 apeice on NSE.

However, the listing has been better-than-expectations. Prostarm Info Systems, a Navi Mumbai-based company, witnessed a substantial drop in its grey market premium (GMP) from Rs 20 to Rs 12 per share since the closure of its initial public offering (IPO). This decline, amounting to a 40 per cent reduction, suggests potential listing gains of around 10-11 per cent for investors.

The company's IPO, which ran from May 27 to May 29, was offered in a price band of Rs 95 to Rs 105 per share, with a lot size of 142 shares. Through this IPO, Prostarm Info Systems successfully raised Rs 168 crore, entirely from the fresh sale of 1,60,00,000 equity shares.

The IPO witnessed strong demand, being oversubscribed by 97.20 times, receiving over 17.54 lakh applications worth Rs 11,370 crore. This robust interest indicates investor confidence in the company's future prospects. The allocation for qualified institutional bidders (QIBs) was subscribed 104.49 times, showing considerable support from institutional investors.

Non-institutional investors (NIIs) displayed even greater enthusiasm, subscribing to the IPO 222.14 times. Meanwhile, the retail investor quota was subscribed 39.49 times, highlighting widespread interest across different investor categories.

Founded in 2008, Prostarm Info Systems specialises in designing, manufacturing, and selling energy storage and power conditioning equipment. Its product line includes UPS systems, inverter systems, solar hybrid inverter systems, lithium-ion battery packs, and voltage stabilisers. This diverse portfolio positions the company well within the growing energy equipment market.

Choice Capital Advisors acted as the sole book-running lead manager for this IPO, ensuring a smooth process, while Kfin Technologies served as the registrar for the issue. The involvement of these firms underscores the seamless execution of the IPO and market trust in the company's financial management.