Prostarm Info Systems IPO fully subscribed within hour of launch, led by retail investors; check price band and other details

Prostarm Info Systems IPO opened to robust response from investors. Till 11:50 am on Day 1, Prostarm Info Systems IPO was fully subscribed, led by strong response from retail and Non Institutional Investors.

The retail portion is booked 1.4 times, with bids for nearly 80 lakh shares against 56 lakh on offer for this category, while Non Institutional Investors (NIIs) portion subscribed 1.6 times.

Prostarm Info Systems plans to raise ₹168-crore through public issue. The IPO will remain open for subscription till May 29. The IPO is a complete fresh issue of 1.6 crore shares.

Prostarm Info Systems IPO details

Prostarm Info Systems IPO aims to raise ₹168 crore through its public issue. The IPO is a fresh issue of over 1.6 crore shares.

The company has fixed the price band of the issue at ₹95 to ₹105 per share. The lot size, or the minimum bid quantity to apply for the issue, is 142 shares. This equates to a minimum investment amount of ₹14,910 per lot at the upper end of the price band for retail investors.

Prostarm Info Systems has appointed Choice Capital Advisors as book-running lead managers of the IPO, while Kfin Technologies is the registrar for the issue.

Prostarm Info Systems IPO: Important dates

Prostarm Info Systems IPO will remain open for bidding from 27 to 29 May. After the bidding is closed, the allotment of shares is expected to be finalised on May 30.

Successful bidders can expect the shares to be credited to their demat accounts by June 2, with others receiving refunds on the same day. Prostarm Info Systems shares are scheduled to list on the BSE and NSE on June 3.

Prostarm Info Systems IPO Objective

The company plans to raise ₹168 via a fresh issue. Net proceeds from the IPO will be used towards the following objectives:

• Repayment of certain borrowings: The company will use ₹17.96 crore of the net proceeds for the repayment or prepayment of all or a portion of certain outstanding borrowings
• Working capital requirements: The company will use ₹72.50 crore out of the net proceeds to fund their working capital requirements
• Inorganic growth and general corporate purposes: Part of the IPO proceeds will be used for general corporate needs or for growth through unidentified inorganic acquisitions.

About Prostarm Info Systems

Incorporated in 2008, Prostarm Info Systems is engaged in the design, manufacturing, assembly, sale, and service of a wide range of energy storage and power conditioning equipment in India. Its core portfolio includes UPS systems, inverters (including lift and solar hybrid variants), lithium-ion battery packs, servo-controlled voltage stabilisers (SCVS), isolation transformers, and other power solution products.

These solutions are offered in both standard and customised formats, manufactured in-house as well as through third-party contract manufacturers. Additionally, the Company deals in third-party products such as batteries, solar panels, IT assets, and provides reverse logistics and end-of-life solutions. The company has established a strong presence across critical sectors such as BFSI, healthcare, defence, aviation, education, and oil & gas, delivering reliable and affordable power electronics solutions. Its offerings are supported by value-added services including installation, rentals, AMCs, and comprehensive after-sales support.

The company operates three manufacturing units—2 located in Pisoli, Pune, and 1 in Mahape, Navi Mumbai. These facilities are equipped with modern infrastructure and enable the company to maintain tight control over product quality, cost efficiency, and production timelines. It has also made investments in R&D and technology, including partnerships for Battery Management System (BMS) technology and acquisitions in the transformer and inverter segments.

Financial snapshot

The company has demonstrated strong financial growth with a 22.69% CAGR in revenue from ₹171.30 crores in FY22 to ₹257.87 crores in FY24, alongside leading EBITDA, PAT margins, and improved ROA, ROE & ROCE compared to peers.

Strengths and Opportunities

• The company has built a strong customer base across multiple industries, including clients like PSU Banks, L&T, Tata Power, and Bajaj Finance. In FY24 they served over 700 customers with 40% of customers retained over the past 3 years and 19% over 5 years.

• Prostarm Info Systems operates through a geographical network of 21 branch offices and 2 storage facilities across 18 states and 1 union territory, supported by a dealer and distributor network that grew from 469 in FY22 to 478 in FY24.

• The company is led by an experienced senior management team with industry expertise and a strong network, supported by a committed workforce of 423 permanent and 19 contractual employees.

Risks and threats

• The company’s revenue is highly concentrated among top 10 (71.8% of revenue) & 5 (59.9% of revenue) key customers as of 9MFY25, and loss or reduced business from any of them could materially impact its financial performance and operations.

• The company is highly dependent on a network of domestic and international suppliers, primarily from India and China, for critical materials and components, its top 10 suppliers comprise 87.02% of revenue as of 9MFY25, making its operations vulnerable to supply disruptions, price volatility, and quality issues.