Prostarm Info Systems IPO, a prominent player in India’s power solutions industry, has launched its Initial Public Offering (IPO) on May 27, 2025. The IPO, aiming to raise ₹168 crore, has garnered significant attention from investors across the country.Facebook+2The Economic Times+2The Economic Times+2
Prostarm Info Systems IPO: Company Overview
Established in 2008 and headquartered in Navi Mumbai, Prostarm Info Systems specialises in providing comprehensive power solutions. The company’s product portfolio includes Uninterruptible Power Supply (UPS) systems, inverters, solar hybrid inverters, and lithium-ion battery packs. Additionally, Prostarm has undertaken rooftop solar photovoltaic power plant projects on an Engineering, Procurement, and Construction (EPC) basis.Autocar Professional+3Angel One+3NewsDrum+3The Week+2NewsDrum+2Angel One+2
With three manufacturing facilities in Maharashtra and a presence in 17 states and one union territory, Prostarm has served over 700 clients in FY24, including industry giants like Larsen & Toubro, Tata Power, and Bajaj Finance .Angel One+2The Week+2NewsDrum+2
Prostarm Info Systems IPO Details
Issue Size: ₹168 crore
Price Band: ₹95 to ₹105 per share
Issue Type: 100% fresh equity issue of 1.60 crore shares
Face Value: ₹10 per share
IPO Open Date: May 27, 2025
IPO Close Date: May 29, 2025
Listing Exchanges: BSE and NSEIPO Central+4The Economic Times+4The Economic Times+4Threads+7The Economic Times+7Autocar Professional+7Autocar Professional+2The Week+2NewsDrum+2
Prostarm Info Systems IPO: Financial Performance
Prostarm Info Systems has demonstrated consistent financial growth over the past few years.
FY24 Financial Highlights:
Revenue: ₹259.23 crore (up from ₹232.35 crore in FY23)
Net Profit: ₹22.83 crore (up from ₹19.35 crore in FY23)
Return on Equity (ROE): 31.41%
Return on Capital Employed (ROCE): 32.40%
Earnings Per Share (EPS): ₹5.44
Debt-to-Equity Ratio: 0.51 The Economic Times+2IPO Watch+2Angel One+2
These figures indicate a robust financial position, with healthy profitability and efficient capital utilisation.
Utilisation of IPO Proceeds
The funds raised through the IPO will be allocated towards:The Economic Times+2Angel One+2The Economic Times+2
Meeting working capital requirements
Repayment of existing debts
Pursuing inorganic growth opportunities
Supporting strategic initiatives
General corporate purposes Finance Saathi+7Angel One+7NewsDrum+7
This strategic allocation aims to strengthen Prostarm’s market position and support its expansion plans.Instagram+1The Economic Times+1
Prostarm Info Systems IPO: Market Response
The Prostarm Info Systems IPO has witnessed a strong response from investors. By the end of Day 2, the subscription had crossed 6 times the offered shares, indicating high investor confidence in the company’s prospects .
Investment Considerations
Strengths:
Established presence in the power solutions sector
Diverse product portfolio catering to various industries
Strong client base with reputed companies
Consistent financial performance with healthy marginsThe Economic Times+4NewsDrum+4The Week+4Autocar Professional
Risks:
Dependence on the power sector’s growth and government policies
Exposure to raw material price fluctuations
Competition from both domestic and international players
Investors should weigh these factors and consider their risk appetite before investing in the Prostarm Info Systems IPO.
Conclusion
The Prostarm Info Systems IPO presents a compelling opportunity for investors seeking exposure to India’s growing power solutions sector. With a solid track record, strategic growth plans, and strong investor interest, Prostarm is well-positioned to capitalise on the increasing demand for reliable power infrastructure in the country.
As always, potential investors are advised to conduct thorough due diligence and consult financial advisors to make informed investment decisions.
