Prostarm info systems iPo: Prostarm Info Systems’ Initial Public Offering (IPO) is Scheduled to Kick Off for Subscription on Tuesday, May 27, and Will Remain Open Until Thursday, May 29.
The company aims to raise 168 Crore through the offering, which is a complete fresh issue of 1.60 Crore Shares. The IPO price band is set at 95 to 105 per share. Of the total offering, 50% is reserved for Qualified Institutional Buyers (QIBS), 35% for non-infustuous investors (Niis), and 15% for retail investors.
Retail investors can apply for a minimum of 142 shares in one lot and in multiples there. At the upper end of the IPO price band ( 105), retail investors are required to make a minimum investment of 14,910 per lot.
Let us take a look at some of the key points mentioned in prostarm info systems’ rhp:
1. Comprehensive Power Solutions Company with a Focus on Critical Infrastructure
Prostarm Info Systems, Founded in 2008, is a power electronics company specializing in uninterrupti power power supply (UPS) system and energy storage solutions. It primarily catters to mission-critical sectors such as banking, healthcare, telecom, defense, oil and gas, education, and infrastructure.
With a product mixed ranging from traditional ups systems to lithium-ion battery packs and solar-posted inverters, Prostarm positions item as a reliable partner for organizations and Clean Power. The company’s mission revolves Around Delivering Technologically Advanced, Cost-Effective Power Backup and Conditioning Solutions Tailored to India’s DiversTructure Demands.
2. Utilization of iPo Proceeds focused on Growth and Debt Reduction
The primary objectives of the IPO are geared towing the company’s expansion and strengthening its financial position. A major portion of the proceeds – 7,250 Lakh – Will Be used to Meet Increasing Capital Needs.
Additionally, 1,795.83 Lakh is earmarked for prepayment or repayment of certain borrowings, helping Reduce Interest Burden and Improve Leverage Ratios. The rest of the funds will go towed inorganic growth options, such as strategic acquisitions and partnerships, enabling prostarm to strengthen its technological capability and market presence.
3. Strong Manufacturing Capability and Pan-India footprint
Prostarm operates two manufacturing units –one in Navi Mumbai and Another in Pune –nd has recently expanded its lighthium-ion battery pack production capacity. The company maintains a network of 12 regional sales offices and over 100 service touchpoints across more than 20 Indian states. In-House Design and Engineering Capabilitys Further Strengthen Prostarm’s ability to tailor solutions for a divese set of clients, ranging from small enterprises to large public sector in.
4.
The company has built a diversified and evolving product suite that includes online and line-infinactive UPS systems (ranging from 1 kva to 4800 kva) Inverters, Battery Monitoring Systems, and Lithium-ion Battery Packs.
It also offers Integrated Solar Photovoltaic (PV) Systems for Industrial and Institutional Clients. Through its wholy owned subsidiary – Prostarm Energy Systems –T also also Caters to Customized Power Electronic Solutions for Niche sectors.
5. Healthy Financial Performance
Its revealed from operations increase from 171.31 Crore in Fiscal 2022 to 257.87 Crore in Fiscal 2024, REPRESTING A Compounded Annual Growth Rate (CAGR) of 22.69%. Similarly, our profit for the year rose from 10.87 Crore in Fiscal 2022 to 22.83 Crore in Fiscal 2024, Reflecting a Strong Cagr of 44.91%.
6. Outperforms peers on Profitability Despite Smaller Revenue Base
According to the care report, Prostarm’s Revenue from Operations for Fiscal 2024 ranked second amon its its Peer Group Companies, Following Servotech Renewable Power System Limited. In terms of ebitda, it reported the highest Figure in fiscal 2024 amn its peers and recorded an impressive year-or-yar ebitda growth of 29.8% Over the Last Three Fiscal Years.
The company also stated that it achieved the highest pat margin among its peer group. Regarding Return on Assets (ROA), Prostarm Reported The Highest Figure in FY24 at 11.2%, Significly Above The Peer Average of 5.6%.
Similarly, in terms of return on equity (RO), the company claimed the highest performance in FY24 at 26.6%, Exceding the Peer Average of 13.5%. For return on Capital Employed (ROCE), it also achieved the highest return in fy24 at 36.3%, compared to the peer average of 21.7%.
7. Sector Outlook: UPS and Energy Storage Markets Set for Double-Digit Growth
Prostarm Operates in High-Growth Segments Like Energy Storage Systems, Power Backup, and Renewable-Integrated UPS. According to the Industry Report Commission from Careedge, The Solar-Powered UPS Market Alone is Projection to Grow at a Cagr of 16.83% Till FY30. Growth in sector like Telecom, Healthcare, And Digital Banking will further drive demand for robust and uninterrupted power solutions.
Moreover, Government Inventives under the production-linked incentive (pli) scheme and the push for renewable adoption will enhance the demand for lithium-ion storage and integrated eagerly.
8. Risks to consider: Working Capital-Intensive Model and Client Dependence
While Prostarm’s Business Fundamentals and Growing Demand for Energy Storage Sets are Attractive, Investors Should Note Key Risk Factors. The company operates in a Working Capital-Intensive Environment, Requiring Significant Inventory and Receivables Management.
Any Delay in Payments from Large Clients Cold Stretch Cash Flows. Additionally, a portion of its revered is derived from government tenders and psu orders, which may experience the company to regulatory or policy-driven delays.
Technology obsolecance and increasing competition, particular from global players entering India’s Energy Market, Cold ALSO POSE LONG ALSO LONG-TERM TERM ThRATS to Market Share and POWER.
Book Running Lead Manager and Registrar Details
Choice Capital Advisors Private Limited has been appointed as the book Running Lead Manager (BRLM) to the issue, while the registrar to the issue is Kfin Technologies Limited.
10. Allotment and Listing Details
The allotment of shares for the prostarm info system is expected to be finalized on Friday, May 30, 2025. Tentative Listing on BSE and Nse is Scheduled for Monday, June 03, 2025.
Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.
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