Prostarm Info Systems IPO: Price Band, Financials, Key Dates, GMP And More — All You Need To Know
Prostarm Info Systems' shares will be listed on the BSE and NSE.
Prostarm Info Systems Ltd., an integrated power solution company, is set to open its initial public offering on May 27.
The price band for the IPO has been set in the range of Rs 95 to Rs 105 per share. Bids can be made for a minimum of 142 shares and then in multiples thereof.
The IPO will consist of a fresh issue of 1.6 crore equity shares with a face value of Rs 10 through the book-building route. The company's shares will be listed on the BSE and NSE.
The book-running lead managers for the issue include Choice Capital Advisors Pvt. and KFin Technologies., which will serve as the registrar for the IPO.
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.
Prostarm Info Systems IPO Details
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.
Business
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 & 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. Ltd. and Bajaj Finance Ltd.
Financial Performance
On the financial front, the company posted a Rs 257.87 crore revenue from operations and a profit of Rs 23.34 crore in the financial year ending March 2024. It registered a revenue of Rs 230.36 crore and a profit of Rs 19.99 crore for the financial year ending March 31, 2024.
Prostarm Info Systems: Key Risks
A significant proportion of the revenue is dependent upon a limited number of customers, and loss of any current customers could lead to a loss of revenue. Additionally, the manufacturing units are located in the state of Maharashtra, exposing the operations to geographical concentration risks arising from local factors.
The company in its DRHP also mentioned that there is a show cause notice for an alleged violation under the Customs Act, 1962, and any adverse order against the company could have a material impact.
The company is also heavily dependent on suppliers, and any disruption in the supply or increase in prices of materials and components could affect the operations of the company.
Prostarm Info Systems IPO GMP
The grey market premium of the IPO was Rs 25 as of 8:23 a.m. on May 27, according to InvestorGain. This implies shares of the company will likely list at Rs 130 apiece, indicating a 23.81% 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.
