Prostarm Info Systems listed on BSE & NSE at ₹120 price at 14.29% premium to issue price

The leading energy storage and power conditioning solutions provider, Prostarm Info Systems Limited, has made a strong debut on both BSE and NSE platforms. After closing its IPO bidding between May 27-29, 2025, the company made its stock market debut on June 3, 2025, at a 14.29% premium to the issue price. This book-building IPO raised ₹168 crore, marking a significant milestone for India's power solutions sector as the company aims to strengthen its market position, reduce debt burden, and fund working capital requirements along with strategic expansion plans.

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Prostarm Info Systems IPO Listing Details

Prostarm Info Systems Limited launched its IPO through book-building process at ₹105 per share. The minimum investment required was 142 shares costing ₹14,910. The IPO received overwhelming response with an exceptional subscription of 96.68 times - QIB segment at 102.67 times, NII at 222.13 times, and retail at 39.48 times by the final day of bidding.

Listing Price: The Prostarm Info Systems IPO share price opened at ₹120 on NSE (up 14.29% from IPO price) and ₹125 on BSE (up 19% from IPO price) on June 3, 2025, marking a strong market debut with significant premium to the issue price of ₹105.

Investor Sentiment: Prostarm Info Systems holds a solid position in India's energy storage and power conditioning equipment market with its comprehensive product portfolio and strong customer relationships across diverse industries.

First-Day Trading Performance Outlook

Prostarm Info Systems commenced trading on both BSE and NSE on June 3, 2025, witnessing a strong stock market debut. Prostarm share price opened at ₹120 on NSE and ₹125 on BSE, representing substantial premiums of 14.29% and 19% respectively to its IPO price. The company entered the market with a diversified portfolio of UPS systems, inverters, solar hybrid inverters, lithium-ion battery packs, and voltage stabilisers. During the market debut, investors and analysts closely monitored the stock's performance considering the growing demand for energy storage solutions and the company's consistent financial track record.

Market Sentiment and Analysis

Prostarm Info Systems Limited, established in January 2008, operates as a leading provider of energy storage and power conditioning solutions in India. The company designs, manufactures, and distributes power solution products including UPS systems, inverter systems, solar hybrid inverters, lithium-ion battery packs, and voltage stabilisers, serving diverse industries including healthcare, aviation, BFSI, railways, defense, and renewable energy sectors.

Market Sentiment: Investors actively evaluate the company's strong market position, consistent financial performance, and growth prospects in India's expanding energy storage and power solutions market.

Performance Indicators: Prostarm Info Systems demonstrated consistent growth with revenue of ₹270.27 crore in December 2024 and strong profitability metrics including ROE of 31.41% and ROCE of 32.41%.

Listing Outlook: The strong listing performance with significant premium reflects investor confidence in the company's business model, financial performance, and growth potential in India's evolving energy infrastructure landscape.

Growth Drivers and Challenges

Prostarm Info Systems presents significant growth potential with its diversified product portfolio, established customer relationships, and strong financial performance. The rising demand for energy storage solutions, renewable energy adoption, and infrastructure development support its expansion plans. However, the company faces challenges including intense competition, working capital requirements, and the need for continuous technological upgrades and product innovation.

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range of energy storage and power conditioning equipment including UPS, inverters, and solar solutions
• Strong Customer Base: Established relationships with government entities, PSUs, and private sector clients across multiple industries
• Wide Geographical Presence: Operations across 18 states and 1 union territory with 21 branch offices and 2 storage facilities
• Consistent Financial Performance: Strong revenue growth and healthy profitability margins with ROE of 31.41%
• Experienced Management: Skilled promoters and management team with deep industry expertise and committed workforce
   

Challenges:

• Intense Competition: Faces pressure from established players and new entrants in the energy storage and power solutions market
• Working Capital Requirements: Need for continuous funding to support business expansion and inventory management
• Technology Evolution: Requirement for ongoing R&D investment to keep pace with technological advancements
• Market Dependence: Business performance linked to infrastructure development and government policy support

Utilisation of IPO Proceeds

Prostarm Info Systems plans to utilise the ₹168 crore raised from the fresh issue to strengthen its financial position and support strategic business growth.

• Debt Repayment: ₹72.5 crore will be used to repay or prepay existing borrowings, helping reduce interest costs and improve financial flexibility.
• Working Capital: Significant portion allocated for funding working capital requirements to support business operations and growth.
• Strategic Growth: ₹18 crore earmarked for capital expenditure and remaining funds for inorganic growth opportunities through acquisitions and strategic initiatives.
   

Financial Performance of Prostarm Info Systems

Prostarm Info Systems has shown consistent financial growth, driven by strong demand for energy storage solutions and operational efficiency:

• Revenue: ₹270.27 crore for December 2024, showing steady growth from ₹259.23 crore in FY2024, reflecting consistent demand for power solution products.
• Net Profit: ₹22.11 crore in December 2024, maintaining healthy profitability levels comparable to ₹22.80 crore in FY2024, demonstrating stable operational performance.
• Net Worth: ₹107.24 crore as of December 2024, showing strong financial foundation and healthy balance sheet position for future growth.
   

Prostarm Info Systems offers an attractive investment opportunity with its established market position in energy storage solutions, consistent financial performance, and strong growth prospects. While it faces challenges like competitive pressures and working capital requirements, its diversified product portfolio and experienced management position it well for capitalising on India's growing energy infrastructure demand.

The IPO presents a compelling opportunity for investors to participate in a profitable company with significant growth potential in India's expanding energy storage and power solutions sector, as evidenced by the strong listing performance.