Prostarm Info Systems IPO opens today: GMP up 24%; should you subscribe?

Prostarm Info Systems were trading at ₹130, commanding a GMP of ₹24 or 23.8 per cent compared to the upper price band of ₹105, according to sources tracking unofficial markets

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Prostarm Info Systems IPO: The initial public offering (IPO) of power solution products company Prostarm Info Systems opens for public subscription today, Tuesday, May 27, 2025. The company aims to raise ₹168 crore through the public offer comprising a fresh issue of 16 million equity shares. 

 

Prostarm Info Systems has already raised ₹50.4 crore from various anchor investors at the upper price band of ₹105 per equity share ahead of the public offering's opening.

Prostarm Info Systems IPO details

The three-day subscription window will close on Thursday, May 29, 2025. According to the red herring prospectus (RHP), the basis of the allotment of shares is expected to be finalised on Friday, May 30, 2025. Shares of Prostarm Info Systems will be listed on both exchanges BSE and NSE tentatively on Tuesday, June 3, 2025. 

 

The company has set the price band in the range of ₹95 to ₹105 per equity share. Retail investors would require a minimum investment amount of ₹13,490 to subscribe for at least one lot comprising 142 shares. 

 

Kfin Technologies serves as the registrar for the issue. Choice Capital Advisors is the sole book-running lead manager. 

Prostarm Info Systems IPO GMP

On Tuesday, the unlisted shares of Prostarm Info Systems were trading at ₹130, commanding a grey market premium (GMP) of ₹24 or 23.8 per cent compared to the upper price band of ₹105, according to sources tracking unofficial markets.

Prostarm Info Systems IPO - Should you subscribe?

Anand Rathi Research - Subscribe for long-term

Analysts at Anand Rathi Research believe that the issue is fairly priced and recommend subscribing to the issue for long-term investment.

 

"The company boasts a diverse and continually evolving range of products, product verticals, and a broad customer base. Additionally, it provides customers with a variety of solutions to address their power storage and power conditioning needs," the brokerage said in a research note.

 

In addition, Anand Rathi Research highlighted that the company has built a wide customer base across diverse industries by offering products with varied applications and remains focused on strengthening its relationships with domestic customers across all product verticals.

 

"At the upper band, the company is valued at 27.1x its FY24 EPS. Following the issuance of equity shares, the company's market capitalization stands at ₹6,182 million, with a market cap-to-sales ratio of 2.4 based on its FY24

earnings," it added.  ALSO READ | Unified Data-Tech IPO allotment today; check status, GMP, listing date

 

Bajaj Broking - Subscribe for long-term

According to analysts at Bajaj Broking, the company's market growth in its top and 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," the brokerage said.

 

On the financial performance front, the company posted a consolidated total income of ₹259.23 crore in FY24 compared to ₹232.35 crore in FY23. In FY24, the company reported a consolidated net profit of ₹22.80 crore, up from ₹19.35 crore in FY23. For the nine-month period ended on December 31, 2024, it earned a net profit of ₹22.11 crore and a total income of ₹270.27.76 crore.

 

"For the last three fiscal years, the company has posted an average EPS (earning per share) of ₹4.72 and an average RoNW ( Return on net worth) of 34.50 per cent. The issue is priced at a P/BV of 4.20 based on its NAV of ₹25.01 as of March 31, 2024, and at a P/BV of 2.45 based on its post-IPO NAV of ₹42.85 per share (at the upper cap)," it added. 

About Prostarm Info Systems

Incorporated in January 2008, Prostarm Info Systems specialises in designing, manufacturing, and selling Energy Storage and Power Conditioning Equipment, known as "Power Solution Products." The company manufactures various Power Solution Products, including UPS systems, inverter systems, solar hybrid inverter systems, lithium-ion battery packs, and voltage stabilisers.

 

It also offers customised and standard products, produced in-house and through contract manufacturers. Its services include installation, rental options, and after-sales support, such as warranty, post-warranty care, and Annual Maintenance Contracts (AMC), enhancing the value of our products for diverse customers. The company serves diverse industries, including healthcare, aviation, research, BFSI, railways, defence, security, education, renewable energy, IT, and oil & gas.