Prostarm Info Systems IPO: A Quick Guide for Smart Investing

Prostarm Info Systems IPO​ is all set to open on May 27, 2025 (Tuesday). Established in 2008, Prostarm Info Systems Limited started its journey as a supplier of batteries and uninterruptible power supply systems (UPS) procured from third-party vendors. In 2021, it moved towards the manufacturing, designing, parts assembling, and supply of power conditioning and energy storage equipment.

In this blog, we’ll get into Prostarm Info Systems IPO​ details, covering the most important information such as price band, lot size, financials, and peer comparison.

Prostarm Info Systems IPO​ Date

Prostarm Info Systems IPO is a mainboard IPO which is going to open on May 27, 2025 and closes on May 29, 2025. The allotment date is May 30, 2025, while the listing is expected to be on June 3, 2025. As it is a mainboard IPO, it is going to list on both the NSE and BSE exchanges.

Prostarm Info Systems: IPO​ Issue Size

Prostarm Info Systems IPO valuation, as denoted by the market capitalization, stood at ₹618.18 crores. Its issue size is ₹168 crores (1.60 crores) with only the fresh issue component. The lot size is 142 shares, and the price band is fixed at ₹95 to ₹105 per share.

Prostarm Info Systems IPO​ Proceeds Usage

Prostarm Info Systems Limited IPO proceeds will be used to fulfill working capital requirements, and pre-payment or repayment of outstanding loans. Apart from this, the money will be deployed for making acquisitions and other strategic steps to boost growth.

Prostarm Info Systems IPO​ Reservations

Prostarm Info Systems IPO​ reservations to retail investors are 35% of the issue (not less than 56 lakh shares). For QIBs, it is 50% of the issue (not more than 80 lakh shares) and for NIIs, it is 15% of the issue (not less than 24 lakh shares). There is no mention of Prostarm Info Systems IPO shareholder quota in the red herring prospectus (RHP).

Prostarm Info Systems IPO​ Lot Size

Prostarm Info Systems IPO​ lot size is 142 shares, wherein bidding can be done in multiples. The minimum amount that a retail investor has to invest (at the upper price band) is ₹14,910.

Prostarm Info Systems IPO: About the Company

Prostarm Info Systems Limited manufactures UPS systems, lift-inverter systems, and lithium-ion
battery packs. It also deals with and supplies third-party power solution products such as batteries, solar panels, and IT assets, and takes rooftop solar PV projects on an EPC basis. It caters to different industries, including healthcare, railways, BFSI, defence, etc.

Its wide footprint is defined by 21 branch offices and 2 storage facilities across 18 states and 1 UT in India. Apart from the relationship with contract manufacturers, the company also has 3 manufacturing units located in Maharashtra. It focuses on technological innovation by enhancing the in-house R&D capabilities and through the acquisition of technology.

Prostarm Info Systems IPO: Industry Overview

The demand for power backup systems is rising in India due to the problem of power shortages, which presents a great opportunity for companies to expand their business. India’s UPS market is expected to grow at a CAGR of 8.22% till FY30, with the rising demand for electricity from commercial and industrial segments.

India’s lithium-ion battery market size is predicted to rise at a CAGR of 19.67% from ₹55,807 crores in FY24 to ₹1,63,909 crores by FY30. With the rising demand for energy storage solutions in EVs and the renewable energy sectors, this market is anticipated to surge to new heights.

Prostarm Info Systems Limited IPO​: Financial Performance

Prostarm Info Systems Limited’s revenue has increased from ₹232.35 crores in FY23 to ₹259.23 crores in FY24, a growth of 11.57%. In the same period, net profit also increased by 17.83% from ₹19.35 crores to ₹22.80 crores in FY24.

Highlighting the healthy operational efficiency, its EBITDA rose by 25.65% on a year-on-year basis to ₹36.62 crores. Also, the company’s net worth stood at ₹84.30 crores in the financial year 2024, an increase of 38.20% over the previous financial year.

Prostarm Info Systems Limited​ IPO: Peer Analysis

In the financial year 2023-24, Prostarm Info Systems Limited​ had an EBITDA margin of 14.20%, which was higher than its peers Servotech Renewable Power System Limited (6.32%) and Sungarner Energies Limited (11.92%).

Return on Net Worth (RoNW) of Prostarm Info Systems was 32.12%, best compared to the other two peers. Return on Capital Employed (ROCE) of Prostarm Info Systems Limited was 32.40% in the financial year 2023-24, higher than the industry peers of Servotech Renewable Power System Limited (11.40%) and Sungarner Energies Limited (17.12%).

Prostarm Info Systems IPO Risk Factors

The revenue of Prostarm Info Systems is highly concentrated towards a few customers, and the loss of customers can affect the company’s financial position.

Any material effect on the relationship with third-party dealers or distributors can directly impact the company’s sales. The company had made negative operating cash flows in the past financial years, which can hamper the business operations.

For all the insights on Prostarm Info Systems IPO​ and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for Prostarm Info Systems IPO easily on the SMC ACE App by opening free demat account now.

Reference:
https://cmsapi.choiceindia.com/assets/65087151-032a-45a5-b0df-2955c2b3ad0b

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