Prostarm Info Systems IPO Day 3 Live: Issue subscribed 97.19 times so far. Check GMP, key dates, more. Apply or not?

Prostarm Info Systems IPO Day 3 Live: The ₹168-crore initial public offering (IPO) of Prostarm Info Systems, a firm specializing in integrated power solutions, will end today (Thursday, May 29). Prostarm Info Systems IPO price band is set at ₹95-105 per share. The company provides a variety of integrated power solutions, focusing particularly on UPS systems, lithium-ion battery packs, and third-party power solutions, among others.

It serves various sectors, including healthcare, aviation, research, BFSI, railways, defense, security, education, renewable energy, information technology, and oil & gas.

Prostarm manufactures a range of power solution products under its own brand, including UPS systems, inverter systems, lift inverter systems, solar hybrid inverters, lithium-ion batteries, servo-controlled voltage stabilizers, and isolation transformers.

The company has three manufacturing plants located in Maharashtra. During FY24, it served over 700 clients, among them Larsen & Toubro Ltd, Tata Power Co. Ltd, and Bajaj Finance Ltd.

As per the red herring prospectus (RHP), the company's listed peers are Servotech Renewable Power System Ltd (with a P/E of 243), and Sungarner Energies Ltd (with a P/E of 55).

From a financial perspective, the company achieved a revenue of ₹268.62 crore from operations and recorded a profit after tax (PAT) of ₹22.10 crore for the first nine months ending December 2024. For the fiscal year ending March 31, 2024, it reported a revenue of ₹257.87 crore and a PAT of ₹22.79 crore.

Tentatively, Prostarm Info Systems IPO basis of allotment of shares will be finalised on Friday, May 30 and the company will initiate refunds on the same day, while the shares will be credited to the demat account of allottees on Monday, June 2. Prostarm Info Systems shares are likely to be listed on BSE and NSE on Tuesday, June 3.

Prostarm Info Systems IPO subscription status

The initial public offer of Prostarm Info Systems IPO has been subscribed 97.19 times on the third day of subscription, as per BSE data.

The initial share sale received bids for 1,08,84,75,440 shares against 1,12,00,000 shares on offer, as on 17:00 IST, according to BSE.

The portion for retail investors received 39.47 times subscription while the quota for non-institutional investors subscribed 222.13 times to the issue. The qualified institutional buyers (QIBs) portion has been booked 104.49 times.

On the first bidding day, Prostarm Info Systems IPO subscription status was 3.54 times, and the issue was booked 12.65 times on the second day of subscription.

Prostarm Info Systems IPO Review

Gaurav Garg from Lemonn Markets Desk highlighted that Prostarm Info Systems Ltd presents an appealing opportunity for investors interested in India's growing power backup and clean energy sector. The firm boasts a solid financial history, a scalable business approach, a wide range of services, and impressive return ratios, all while having a valuation that seems appealing compared to competitors.

Considering the optimistic outlook for the industry, its established operations, and fair pricing, we suggest investors with a medium to long-term perspective subscribe to the IPO. The company is well-positioned to take advantage of the structural advantages in energy storage and green energy solutions, supported by strong execution and an expanding customer base.

According to Canara Bank Securities, Prostarm Info Systems Ltd's transition to comprehensive manufacturing, a broadened range of power solutions, and a solid presence among institutional investors position the company effectively in India's expanding market for energy storage and backup systems. Its alignment with the increasing demand for UPS systems, lithium-ion batteries, and solar hybrid inverters improves the potential for long-term growth.

With a fair valuation at 14.72x P/E (9MFY25 annualized), the firm presents an appealing opportunity for investors. Although cash flow efficiency is a point of concern, we advise subscribing for those looking for long-term investment in the energy infrastructure and digital power solutions sector.

Prostarm Info Systems IPO Details

Prostarm Info Systems IPO includes a fresh issue of 1.6 crore equity shares. The company plans to allocate ₹72.50 crore of the total IPO funds to meet its capital needs, ₹17.95 crore for debt repayment, while the remainder will be directed towards pursuing inorganic growth through as-yet-undefined acquisitions and other strategic initiatives, in addition to general corporate purposes.

Choice Capital Advisors serves as the lead manager for the book, and Kfin Technologies Ltd is appointed as the registrar for the offering.

Prostarm Info Systems IPO GMP today

Prostarm Info Systems IPO GMP today is +24. This indicates Prostarm Info Systems share price is trading at a premium of ₹24 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Prostarm Info Systems share price is indicated at ₹129 apiece, which is 22.86% higher than the IPO price of ₹105.

Analysing the grey market activities from the last 10 sessions, the IPO GMP is showing an upward trend today and is anticipated to have a robust listing. The minimum GMP recorded is ₹0.00, whereas the maximum GMP reaches ₹25.00, as per insights from investorgain.com experts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.