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Unlisted shares of Prostarm Info Systems Ltd are currently trading at Rs 128 apiece in the grey market, which is a 21.90 per cent premium or GMP over the IPO price of Rs 105.
Prostarm Info Systems IPO.
Prostarm Info Systems IPO Day 2: The initial public offering of Aegis Vopak Terminals Ltd, which opened on Tuesday, as so far received a decent response from investors. Till 5:00 pm on the second day of bidding on Wednesday, the Rs 168-crore IPO received a 12.70 times subscription, garnering bids for 14,22,46,938 shares as against 1,12,00,000 shares on offer.
The retail and NII participation stood at 13.13 times and 27.26 times, respectively. Its qualified institutional buyer (QIB) category got a 1.03 times subscription, according to data from exchanges.
The IPO, which was opened for public subscription on May 27, will be closed on May 29. It received a 3.61 times subscription on the first day of bidding.
The price band has been fixed in the range of Rs 105 apiece.
Prostarm Info Systems IPO GMP Today
According to market observers, unlisted shares of Prostarm Info Systems Ltd are currently trading at Rs 128 apiece in the grey market, which is a 21.90 per cent premium or GMP over the IPO price of Rs 105. It indicates decent listing gains for investors on June 3, the tentative listing date.
The shares will be listed on both BSE and NSE.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Prostarm Info Systems IPO: Should You Subscribe?
Anand Rathi recommends ‘Subscribe for long-term’, highlighting Prostarm’s diverse product range and wide customer base. With a valuation of 27.1x FY24 EPS and a market cap-to-sales ratio of 2.4x, the firm sees potential in its plans to expand production capacity and integrate automation.
SMIFS gives a ‘Subscribe’ rating, citing low current capacity utilization, which offers scope for margin and earnings growth. It believes the stock is undervalued relative to peers despite strong financials and sees upside potential as operational leverage kicks in.
SBI Securities has given a ‘Subscribe’ rating, citing Prostarm Info Systems’ strong presence across sectors like data centers, renewable energy, hospitals, and elevators. With a robust financial performance — revenue, EBITDA, and PAT growing at a CAGR of 23%, 49%, and 43% over FY22–FY24 — the brokerage finds the IPO valuation of 20.2x FY25E EPS reasonable compared to peers.
Arihant Capital also assigns a ‘Subscribe for long-term’ rating, pointing to its 700+ customer base, extensive dealer network, and growing international footprint. The firm sees opportunities in the growing UPS, lithium-ion battery, and stabilizer markets, with IPO proceeds aimed at business expansion.
ProfitMart Securities maintains a ‘Subscribe for long-term’ stance, citing the experienced promoter group and strong management as key strengths. The firm expects consistent future performance, making it a suitable pick for patient investors.
Bajaj Broking tags it ‘Subscribe for long-term’, noting that the company’s integrated service model boosted bottom-line growth from FY23 onwards. While the IPO appears fully priced, long-term investors may benefit.
Prostarm Info Systems IPO: More Details
The IPO has a fresh issue of 1.6 crore equity shares. The price band for the offer is fixed at Rs 95-105 per share. Prostarm Info Systems intends to utilise Rs 72.50 crore of the total IPO proceeds towards funding capital requirements of the company, Rs 17.95 crore for payment of debt and the remaining capital will be used for achieving inorganic growth through unidentified acquisitions and other strategic initiatives as well as for general corporate purposes.
The company is an integrated power solution provider, especially in UPS system lithium-ion battery pack and third-party power solution products, among others. It 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 Maharashtra. The company catered to more than 700 clients during FY24, including Larsen & Toubro Ltd, Tata Power Co. Ltd and Bajaj Finance Ltd.
The company’s shares will be listed on the BSE and NSE.
Choice Capital Advisors is the book-running lead manager, and Kfin Technologies Ltd is the registrar to the offer.
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