Investor interest in Prostarm Info Systems’ initial public offering (IPO) has grown rapidly. Retail and non-institutional investors led the charge in the issue’s oversubscription by more than seven times as of Day 2 of bidding (May 28, 2025).
However, the crucial question still stands: Is it worthwhile to make an investment prior to the May 29 IPO closing?
Everything you need to know is right here, including subscription status, financials, expert reviews, grey market premium (GMP), and if you should bid or not.
“Prostarm Info Systems IPO subscription status chart showing 7.88x overall demand as of May 28, 2025”
Quick Snapshot: Prostarm IPO Details
Specifics Information
Date of IPO Opening: May 27, 2025
Date of IPO Closure: May 29, 2025
Band Price: ₹95 to ₹105; Lot Size: 142 shares
The entire issue size (new issue alone) is ₹168 crore.
Stocks 1.6 crore GMP was offered (as of May 27). ₹25
Based on GMP, the expected listing price is around ₹130.
Date of Tentative Listing: June 3, 2025
Registrar Kfin Technologies Lead Manager for Book-running Capital Advisors
Subscription Status (as of May 28, 12 PM)
Total number of subscribers: 7.88x
RIIs (retail investors): 7.12x
11.94x Non-Institutional Investors (NIIs)
Just 0.09% of buyers are qualified institutional buyers (QIBs).
The shopping frenzy indicates significant public opinion, notwithstanding early limited institutional interest.
Total number of subscribers: 7.88x
RIIs (retail investors): 7.12x
11.94x Non-Institutional Investors (NIIs)
Just 0.09% of buyers are qualified institutional buyers (QIBs).
The shopping frenzy indicates significant public opinion, notwithstanding early limited institutional interest.
Prostarm IPO GMP trend rising to ₹25 ahead of May 29 closing date
Company Overview: Who is Prostarm Info Systems?
Located in Maharashtra, Prostarm is a rapidly expanding supplier of power electronics solutions. Among its primary products are:
Systems with Uninterruptible Power Supplies (UPS)
Hybrid solar inverters
Packs of lithium-ion batteries
Stabilizers for voltage
The Agarwal family owns the business, which faces competition from publicly traded firms like Sungarner Energies and Servotech Power Systems.
“Prostarm Info Systems factory image showcasing power solution products and industrial capabilities”
Financial Performance Snapshot
Prostarm is a desirable long-term investment due to its steady growth. A glance at its financials is provided below:
Metric: Growth Revenue ₹230 crore ₹258 crore +12% for FY23 and FY24
₹19 crore in net profit ₹22.8 crore + 18%
EBITDA: around ₹27 crore ₹35 crore + 29.8%
EBITDA 11.8% margin 13.7% plus 190 basis points
Post-IPO market capitalization: ₹618 crore; P/E ratio (at ₹105) — 2.4x Reasonable — 27.1x Fairly Priced Market Cap-to-Sales
Use of IPO Proceeds
The business has prudently allocated its IPO funds:
Working capital: ₹72.5 crore
Repayment of debt: ₹18 crore
₹9 crore: Acquisition of a subsidiary
Balance: Corporate costs and inorganic growth
This capital allocation points to a strategy emphasis on growth through innovation, expansion, and better balance sheet health.
Brokerages Weigh In: What Experts Say
Bajaj Broking Rating: Long-Term Subscription
“IPO with a high price tag, but supported by consistent growth in revenue and profits.” Having all services in one location increases profits.
🔹 Anand Rathi Rating: Long-Term Subscriber
“IPO has a reasonable valuation. Promising ambition is demonstrated by the expansion into automation technology and new facilities.
What the Grey Market Says
If sentiment remains stable, the GMP, which was at ₹25 as of May 27, would indicate a 23.8% listing gain.
This places the anticipated listing price at about ₹130, which is significantly more than the ₹105 maximum price range.
Note: Although speculative and unofficial, grey market movements frequently represent the mood of early investors.
Should You Invest in Prostarm IPO?
✔️ Reasons to subscribe: Strong retail and NII demand, oversubscribed on Day 1.
Positive GMP suggests potential listing profits.
Financial performance is strong, with margins growing.
Strategic utilization of funds for long-term growth.
Competent peer placement in a rising market (power and automation).
Watch out for low QIB participation (0.09% as of May 28).
Priced reasonably but not cheaply (P/E ratio of 27.1x).
Competes with established players in power electronics.
Final Verdict: Subscribe for Long-Term Listing Gain Potential.
Prostarm Info Systems’ IPO is ideal for retail investors seeking both short-term listing gains and long-term potential. While it may not be a deep value investment, it provides a balanced risk-reward profile supported by excellent fundamentals, solid GMP, and strategic expansion plans.
Just make sure to apply before the IPO ends on May 29.
For more detailed information and updates on the Prostarm Info Systems IPO, visit The Economic Times and PV Magazine India.