Prostarm Info Systems IPO

Prostarm Info Systems IPO is a book-built issue worth ₹168.00 crore, comprising a fresh issue of 1.60 crore equity shares. The IPO opens for subscription on May 27, 2025, and closes on May 29, 2025. The allotment is expected to be finalised on May 30, 2025, with tentative listing on BSE and NSE scheduled for June 3, 2025.

The IPO is priced in a band of ₹95 – ₹105 per share. Retail investors can apply for a minimum of 1 lot (142 shares), requiring an investment of ₹14,910 at the cutoff price. sNII investors must apply for at least 14 lots (1988 shares), amounting to ₹2,08,740. For bNII, the minimum application size is 68 lots (9656 shares), amounting to ₹10,13,880.

Choice Capital Advisors Private Limited is the book-running lead manager to the issue, and KFIN Technologies Limited is the registrar.

For detailed financials, company background, and risk factors, investors are advised to refer to the Prostarm Info Systems IPO RHP.

Industry Outlook

1. The UPS Market is valued at ₹96,432 million in FY24, the Indian UPS market is projected to grow at a CAGR of 8.22% till FY30. Growth is fuelled by frequent power outages, increased reliance on digital infrastructure, and expanding commercial and industrial sectors.
2. The Lithium-Ion Battery Market is estimated at ₹5,58,078 million in FY24, this market is expected to surge to ₹16,39,090 million by FY30, growing at a CAGR of 19.67%. Demand is driven by applications in electric vehicles, consumer electronics, and renewable energy storage.
3. The Solar Hybrid Inverter Market has reached ₹5,242 million in FY24, with a CAGR of 9.21% between FY19 and FY24. It is forecasted to grow at 18.60% CAGR till FY30, supported by India’s push for decentralised solar energy adoption.
4. The Solar EPC Market is currently at ₹135,464 million in FY24, the market is expected to grow to ₹2,22,112 million by FY30. Rooftop solar and integrated solar-plus-storage solutions are key growth drivers.

Prostarm Info Systems IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

1. Allocate ₹7,250 lakhs to meet the company’s growing working capital requirements, supporting increased demand for its power solution products and services across India.
2. Utilise ₹1,795.83 lakhs to prepay or repay, in full or in part, certain outstanding borrowings, thereby improving the company’s debt-to-equity ratio and reducing interest costs.
3. Deploy a portion of the proceeds (not exceeding 25% of gross proceeds) for strategic acquisitions and other growth initiatives to expand market presence and product capabilities.
4. Use the remaining funds (within a cap of 35% of gross proceeds) for general corporate purposes including brand building, operational efficiency, and potential capital expenditure.

About Prostarm Info Systems Limited

Prostarm Info Systems Limited, originally incorporated as Prostar Micronova Power Systems Private Limited in 2008, began its journey by selling and installing batteries and uninterruptible power supply (UPS) systems sourced from third-party vendors. The company transitioned into a public limited company in 2017 and adopted its current name the same year.

Prostarm is a comprehensive power electronics solutions provider, engaged in the design, manufacturing, assembly, and supply of energy storage and power conditioning equipment. Its product portfolio includes UPS systems, inverters, lift inverter systems, solar hybrid inverters, lithium-ion battery packs, servo-controlled voltage stabilizers, and isolation transformers.

How To Check the Allotment Status of the Prostarm Info Systems IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for Prostarm Info Systems IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Prostarm Info Systems IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Prostarm Info Systems IPO

Registered office: Plot No. EL 79, Electronic Zone, TTC, MIDC, Mahape, Navi Mumbai, Thane – 400 710, Maharashtra, India.

Phone: +91 22 4528 0500

E-mail: cs@prostarm.com

Prostarm Info Systems IPO Reservation

Prostarm Info Systems IPO Lot Size

Prostarm Info Systems IPO Promoter Holding

The promoters of the company are Ram Agarwal, Sonu Ram Agarwal and Vikas Shyamsunder Agarwal.

Key Performance Indicators for Prostarm Info Systems IPO

As of March 31, 2024, the market capitalisation of Prostarm Info Systems is ₹618.18

 crore. Here are the KPIs of Prostarm Info Systems:

Price Metrics

Note: The Pre IPO EPS is calculated based on pre-issue shareholding as of the date of RHP and the latest FY earnings as of March 31, 2024, that is available in RHP.

The post-issue EPS is calculated based on the post-issue shareholding and annualised FY earnings of December 31, 2024, that are available in RHP.

Prostarm Info Systems IPO Prospectus

• Prostarm Info Systems IPO DRHP
• Prostarm Info Systems IPO RHP

Prostarm Info Systems IPO Registrar and Lead Managers

Prostarm Info Systems IPO Lead Managers

• Choice Capital Advisors Private Limited

Registrar for Prostarm Info Systems IPO

KFIN Technologies Limited

• Contact Number: 04079611000
• Email Address: ipo@kfintech.com

Prostarm Info Systems IPO Registrar

Financial Performance of Prostarm Info Systems Limited

Know before investing

Strengths

8

1. Offers a wide range of power solutions including UPS, inverters, lithium-ion battery packs, and solar hybrid systems.

2. Revenue from government contracts rose from 18% in FY22 to 46% in 9M FY24, with plans to expand further.

3. Lithium battery pack manufacturing capacity scaled from 1.2 MWh to 100 MWh in December 2023.

4. 478 dealers and distributors across India as of FY24, enabling deep market penetration.

5. Strengthened by technology licenses from ARAI and acquisitions of tech assets and teams.

6. Solar EPC revenue grew from ₹189.39 lakhs in FY22 to ₹2,368.46 lakhs in FY24, driven by renewable energy demand.

7. Three manufacturing units in Maharashtra equipped with modern assembly lines and testing facilities.

8. Led by a seasoned management team with deep domain expertise in power electronics and energy systems.

Risks

8

1. The company has received a show cause notice under the Customs Act, 1962, involving a potential liability of ₹24.9 crore.

2. Over 70% of revenue in 9M FY24 came from the top 10 customers, posing a significant concentration risk.

3. The company reported negative operating cash flows in FY23, FY24, and 9M FY24 due to rising receivables and inventory.

4. Nearly half of FY24 revenue came from government institutions, which are prone to delayed payments and tender risks.

5. Heavy reliance on Chinese imports for lithium-ion cells and UPS components exposes the company to geopolitical and supply chain risks.

6. Instances of delayed statutory filings and pending licenses could attract penalties or operational disruptions.

7. Current manufacturing units are not operating at optimal capacity, affecting cost efficiency.

8. The company, its promoters, and directors are involved in multiple legal proceedings, including tax and cheque bounce cases.

Prostarm Info Systems Limited Peer Details Comparison