Prostarm Info Systems IPO Subscribed 12.65 Times On Day Two; Check GMP

The initial public offering of Prostarm Info Systems Ltd. was subscribed 12.65 times on its second day of bidding on Wednesday, led by demand from non-institutional investors.

The IPO was subscribed 3.55 times on its first day of bidding with the portion for non-institutional investors and retail investors being oversubscribed, whereas qualified institutional buyers showed lackluster demand.

The grey market premium of the IPO was Rs 23 as of 4:00 p.m., according to InvestorGain. This implies shares of the company will likely list at Rs 128  apiece, indicating a 22% premium to the upper end of the price band.

The company announced a price band of Rs 95 to Rs 105 per share for its initial public offering. Prostarm Info Systems plans to allocate Rs 72.50 crore from the net proceeds of the fresh issue towards funding capital requirements of the company. The company intends to utilise Rs 17.95 crore for the payment of debt, while the remaining will be used for achieving inorganic growth through unidentified acquisitions and other strategic initiatives, as well as for general corporate purposes.

• Issue opens: May 27.

• Issue closes: May 29.

• Issue price: Rs 95-105.

• Fresh issue: 1.6 crore equity.

• Lot size: Minimum 142 shares, and then in multiples thereof.

The company is an integrated power solution company, especially in UPS system lithium-ion battery packs, third-party power solution products, among others.

Prostarm Info Systems caters to a range of industries, including healthcare, aviation, research, BFSI, railways, defence, security, education, renewable energy, information technology and oil and gas.

It manufactures several power solution products under the Prostarm brand, such as UPS systems, inverter systems, lift inverter systems, solar hybrid inverter systems, lithium-ion battery packs, servo-controlled voltage stabilisers, and isolation transformers.

It operates three manufacturing facilities in the state of Maharashtra. The company catered to over 700 clients during financial year 2024, including players such as Larsen & Toubro Ltd., Tata Power Co. and Bajaj Finance Ltd.

The IPO has been subscribed 12.65 times as of 5:00 p.m. on Wednesday.

• Qualified institutional buyers: 1.03 times.

• Non-institutional investors: 27.23 times.

• Retail investors: 13.04 times.

The grey market premium of the IPO was Rs 23 as of 4:00 p.m. on May 28, according to InvestorGain. This implies shares of the company will likely list at Rs 128 apiece, indicating a 21.90% premium to the upper end of the price band.

It should be noted that GMP, or grey market price, is not an official price quote for the stock and is based on speculation.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.