Prostarm Info Systems Limited has launched its Initial Public Offering (IPO) to raise capital for business growth. The IPO comprises entirely a fresh issue of 1.60 crore equity shares. The total offer size aggregates up to Rs. 168 crore. The IPO opens on May 27, 2025, and closes on May 29, 2025. The equity shares will be listed on the NSE and BSE following the issue. Here’s everything you need to know.
GMP of Prostarm Info Systems IPO
As of May 29th, 2025, the shares of Prostarm Info Systems Limited in the grey market were trading at a 22.86 percent premium. The shares in the Grey Market traded at Rs. 129. This gives it a premium of Rs. 24 per share over the cap price of Rs. 105. This IPO is a pure fresh issue with no offer-for-sale component.
Overview of Prostarm Info Systems
Prostarm Info Systems Limited was incorporated in January 2008 and focused on energy storage and power conditioning solutions. It designs and manufactures Power Solution Products like UPS systems, inverters, lithium-ion battery packs, solar hybrid systems, and voltage stabilisers.
The company also offers third-party batteries, reverse logistics, and solar EPC services. Prostarm provides end-to-end solutions, including installation, rentals, AMCs, and after-sales support. It serves diverse sectors such as healthcare, IT, BFSI, defence, education, and oil & gas.
The company’s clients include prominent government bodies like the Airports Authority of India and NTPC Vidyut Vyapar Nigam. As of May 2025, operations span 21 branches across 18 states and 1 UT, with 423 permanent and 19 contractual employees.
Promoters of Prostarm Info Systems
The promoters are Ram Agarwal, Sonu Ram Agarwal, and Vikas Shyamsunder Agarwal. They bring vast experience in electrical engineering and the power management sector.
Lead Manager of Prostarm Info Systems Limited IPO
Choice Capital Advisors Private Limited is the sole Book Running Lead Manager (BRLM). KFin Technologies Limited serves as the IPO registrar.
Objectives of the IPO Offer
Prostarm Info Systems Limited plans to utilize the IPO proceeds for three key objectives. It will use Rs. 72.50 crore to fund the working capital requirements of the company. Rs. 17.96 crore will go towards prepayment or repayment of certain outstanding borrowings. The remaining funds will be used for inorganic growth through acquisitions and general corporate purposes.
Financial Analysis of Prostarm Info Systems
Prostarm Info Systems Limited’s revenue has increased from Rs. 230.36 crore in FY23 to Rs. 257.87 crore in FY24, which represents a growth of 11.94 percent. The net profit has increased by 17.83 percent from Rs. 19.35 crore in FY23 to Rs. 22.80 crore in FY24.
Prostarm Info Systems Limited’s revenue and net profit have grown at a CAGR of 22.83 percent and 44.60 percent, respectively, over the last two years. In the 9M FY25, the company earned revenue of Rs. 268.63 crore and a net profit of Rs. 22.11 crore.
Prostarm Info Systems vs Peers
Prostarm Info Systems reported revenue of Rs. 257.87 crore in FY2024 with an EPS of Rs. 5.44 and RoNW of 32.09 percent. In comparison, Servotech Power System Limited earned Rs. 353.68 crore with an EPS of Rs. 0.54 and RoNW of 10.50 percent. Sungarner Energies Limited reported Rs. 17.69 crore in revenue, Rs. 5.22 EPS, and a higher RoNW of 16.78 percent. The company’s net asset value per share is Rs. 19.66, compared to Rs. 6.54 for Servotech Power System and Rs. 41.32 for Sungarner Energies Limited.
Prostarm Info Systems Limited Strengths and Weaknesses
Strengths
- Established brand in the power backup and energy storage sectors.
- Diverse client base across high-growth industries.
- Experienced promoters with strong technical expertise.
- An asset-light business model ensures operational scalability.
- Rising financial performance and high RoNW.
Weaknesses
- Revenue is highly dependent on government and BFSI clients.
- Operates in a highly competitive and fragmented market.
- Relatively small size compared to top-tier players.
- IPO dilution may impact earnings per share in the short term.
- Exposed to raw material and import-related price fluctuations.
Conclusion
Prostarm Info Systems Limited’s IPO offers investors a chance to invest in a growing power backup and energy solutions company. With strong financial growth, experienced promoters, and positive market response, it looks promising. However, investors should consider risks like market competition and customer concentration before investing. It’s suitable for those seeking long-term growth in the energy tech sector.
Written By – Nikhil Naik
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