Prostarm Info Systems Ltd., a leading energy solutions and energy storage company, released its initial public offering (IPO) on May 27, 2025. The IPO goal is to raise ₹168 crore through a fresh issue of one.6 crore equity stocks, with a fee band set among ₹95 to ₹105 per percentage. Investors can bid in masses of 142 stocks, translating to a minimal investment of ₹14,910 at the upper charge band.
Key IPO Details:
Issue Size: ₹168 crore
Price Band: ₹95 – ₹105 per share
Lot Size: 142 shares
Minimum Investment: ₹14,910
Issue Type: Book-built
Listing: BSE and NSE
IPO Dates: Opens on May 27, 2025, and closes on May 29, 2025
Listing Date: Expected on June 3, 2025
Company Overview:
Prostaram Info Systems specializes in power backup solutions, including uninterruptible power supplies (UPS) and inverters. The company has experienced consistent growth, with sales growing from ₹232 crore in FY23 to ₹257.87 crore in FY24. The funds raised through the IPO can be used for operating capital requirements, debt repayment, and expansion projects.
Financial Performance:
Revenue (FY24): ₹257.87 crore
EBITDA Margin: 14.20%
PAT Margin: 8.84%
Debt-to-Equity Ratio: 0.51
Market Capitalization (Post-Issue): ₹618 crore
Price-to-Earnings (P/E) Ratio: 27 (Forward P/E of 20.97 based on FY25 projections)
Grey Market Premium (GMP):
The IPO is witnessing a high-quality reaction within the gray marketplace, with stocks trading at a premium of ₹25, indicating a 24% boom over the upper fee band.
Expert Opinions:
Bajaj Broking recommends subscribing to the IPO for the long term, citing the company’s consistent growth and strong balance sheet. However, they note that the IPO is fully priced.
Peer Comparison:
Compared to peers like Servotech Power System and Sungarner Energies, Prostarm Info Systems showcases competitive margins and a reasonable valuation. For instance, Servotech has a P/E ratio of 82.10, while Prostarm’s is 27, indicating a more attractive valuation for Prostarm.
Conclusion:
Prostarm Info Systems’ IPO presents a possibility for investors seeking exposure to the energy solutions zone. The company’s consistent financial performance, reasonable valuation, and favorable market sentiment make it an attractive option for long-term investment. However, potential traders ought to bear in mind their risk appetite and funding horizon earlier than subscribing.
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Further reading: Finance
