Prostarm Info Systems Limited IPO

About the Company

Incorporated in January 2008, Prostarm Info Systems Limited is an Indian company engaged in the design, manufacturing, and sale of energy storage and power conditioning equipment, referred to as “Power Solution Products.” The company's product portfolio includes:

• UPS Systems

• Inverter Systems

• Solar Hybrid Inverter Systems

• Lithium-Ion Battery Packs

• Voltage Stabilisers

Prostarm manufactures products both in-house and through contract manufacturers. It also sells third-party batteries and provides services such as reverse logistics, end-of-life disposal for UPS systems and batteries, and rooftop solar power projects on an EPC (Engineering, Procurement, Construction) basis.

Its service offerings include installation, rental options, warranty and post-warranty support, and Annual Maintenance Contracts (AMC), adding long-term value to its product offerings.

The company serves a diverse range of sectors, including healthcare, aviation, research, BFSI, railways, defence, security, education, renewable energy, IT, and oil & gas. Its clientele includes government entities such as the Airports Authority of India, Central and State Public Works Departments, Railtel Corporation, and NTPC Vidyut Vyapar Nigam. Objects of the Issue

• Repayment of loans – ₹18 crore

• Working capital requirements – ₹72.5 crore

• Acquisition of a subsidiary – ₹9 crore

• General corporate purposes

Key Strengths

• Diversified Product Portfolio: Offers a comprehensive range of power solutions, including UPS, inverters, batteries, solar equipment, and voltage stabilisers.

• Strong Client Base: Served over 700 clients, including reputed corporates like L&T, Tata Power, and Bajaj Finance.

• Widespread Distribution Network: Presence across India with 22 branches and over 478 dealers.

• Sectoral Diversification: Caters to multiple industries, reducing dependency on any single sector.

• Consistent Financial Growth: The company has shown significant improvement in revenue and profitability from FY22 to FY24.

• After-Sales Revenue: Recurring income through AMCs and service contracts adds to financial stability.

Key Risks

• Regulatory Exposure: A pending notice under the Customs Act could have financial or operational implications.

• Competitive Market: The company operates in a crowded market with well-established domestic and international players.

• Working Capital Intensive: High working capital requirements may lead to liquidity pressures.

• Technological Obsolescence: Rapid advancements in energy technology could require ongoing R&D investments and adaptation.
  

Prostarm Info Systems IPO: Key Details

• IPO Dates: 27th May to 29th May 2025

• Price Band: ₹95 to ₹105 per share

• Lot Size: 142 shares

• Total Issue Size: ₹168 crore

• Retail Quota: 35%

• GMP: 20% (Only for information)
  

Allotment Link

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