Prostarm Info Systems Unveils ₹168 Crore IPO: A New Era in Energy Innovation

Prostarm Info Systems Unveils ₹168 Crore IPO: A New Era in Energy Innovation

Power solutions provider Prostarm Info Systems sets IPO price band at ₹95–₹105 per share, aiming to raise ₹168 crore for expansion and debt reduction.

Introduction: Powering Growth Through Public Investment

Prostarm Info Systems Ltd., a Pune-based integrated power solutions company, is set to launch its initial public offering (IPO) on May 27, 2025. The company has established a price band of ₹95 to ₹105 per equity share, targeting to raise ₹168 crore through the issuance of 1.6 crore new shares. The public offering is scheduled to conclude on May 29, with the company’s shares anticipated to debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) by June 3. Analysts believe that the IPO could garner strong interest from institutional and retail investors, given Prostarm’s steady financial performance and sectoral relevance.

Company Profile: A Decade of Power Solutions

Prostarm Info Systems, established in 2008, is dedicated to the innovation, production, and maintenance of advanced solutions for energy storage and power management systems. Its product portfolio includes uninterruptible power supply (UPS) systems, inverters, lithium-ion battery packs, solar hybrid inverters, servo-controlled voltage stabilizers, and isolation transformers. The company also undertakes turnkey rooftop solar photovoltaic power plant projects on an engineering, procurement, and construction (EPC) basis. Prostarm caters to a diverse clientele across sectors such as healthcare, aviation, banking, defense, education, renewable energy, information technology, and oil & gas. Over the years, the company has earned a strong reputation for its technological adaptability and custom-engineered solutions tailored to client needs.

IPO Details: Structure and Allocation

The public offering involves the issuance of 1.6 crore brand-new equity shares, each carrying a nominal value of ₹10, and will be conducted via the book-building mechanism. The segment reserved for anchor investors is set to commence on May 26. The allocation of shares is as follows: 30% (48 lakh shares) for anchor investors, 20% (32 lakh shares) for qualified institutional buyers (QIBs), 15% (24 lakh shares) for non-institutional investors (NIIs), and 35% (56 lakh shares) for retail individual investors (RIIs). The structure is designed to ensure balanced participation across all investor categories, allowing both seasoned and first-time investors to engage with the offering.

Financial Performance: Steady Revenue and Profit Growth

In the nine months ending December 2024, Prostarm reported a revenue of ₹268.62 crore and a profit after tax (PAT) of ₹22.10 crore. During the financial year concluding on March 31, 2024, the company reported total revenues amounting to ₹257.87 crore alongside a net profit after tax of ₹22.79 crore. These figures reflect the company’s consistent financial performance and its ability to maintain profitability. Moreover, its strong EBITDA margins and operational efficiency demonstrate resilience in a competitive market. The steady rise in topline and bottom-line figures suggests the firm is well-prepared to scale its offerings and expand into new markets.

Utilization of IPO Proceeds: Strategic Growth and Debt Reduction

Prostarm intends to utilize ₹72.50 crore of the funds raised through the IPO to support and manage its day-to-day operational capital needs. Furthermore, ₹17.95 crore is earmarked for settling or partially repaying existing loans, while the balance will be directed towards expansion via acquisitions, strategic projects, and overall corporate activities. The company has highlighted its intent to explore synergy-based acquisitions that align with its mission to provide sustainable, tech-driven energy solutions, potentially boosting its footprint in untapped regions across India.

Market Position: Expanding Footprint and Client Base

With three production plants located in Maharashtra, Prostarm has developed an extensive presence through 21 branch offices spread over 18 states and one Union Territory. The company employs over 440 personnel, including both permanent and contractual staff. Prostarm’s client base includes prominent organizations such as Larsen & Toubro Ltd, Tata Power Co. Ltd, and Bajaj Finance Ltd. The firm holds approved vendor status with organizations such as the Airports Authority of India, Railtel Corporation of India, and NTPC Vidyut Vyapar Nigam. These associations reflect the company’s trust factor and operational reliability in high-stakes projects.

Investment Considerations: Opportunities and Risks

Prostarm’s IPO offers investors an opportunity to participate in the growth of a company operating in the expanding energy solutions sector. The company’s diversified product offerings, consistent financial performance, and broad client base position it well for future growth. However, potential investors should consider market risks, including competition, technological changes, and economic fluctuations, which could impact the company’s performance. Additionally, geopolitical tensions and supply chain disruptions may pose challenges to operations if not managed proactively.

Conclusion: A Strategic Move Towards Expansion

Prostarm Info Systems’ upcoming IPO represents a significant step in its journey towards scaling operations and enhancing its market presence. By raising capital through public investment, the company aims to strengthen its financial position, reduce debt, and pursue strategic growth opportunities. As the demand for sustainable and efficient power solutions rises across urban and industrial India, Prostarm is well-positioned to capture emerging opportunities. Investors seeking exposure to the energy solutions sector may find this IPO a compelling proposition, aligning with India’s broader push towards sustainable and reliable power infrastructure.

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