Prostarm Info Systems Limited IPO: 10 Key Things to Know Before Investing

Prostarm Info Systems Limited delivers innovative power electronics solutions, offering products like UPS systems, inverters, solar hybrid inverters, lithium-ion battery packs, and voltage stabilisers. Its strength lies in in-house R&D, design, and production, ensuring superior quality and timely delivery.

The company serves high-demand sectors such as healthcare, BFSI, railways, oil & gas, and data centres. Its focus on government and institutional clients has resulted in strong customer loyalty. With a robust pan-India presence and expansion plans in international markets like Africa and the Middle East, Prostarm presents a compelling growth opportunity in the rapidly growing energy storage and renewable energy sectors.

Here are the key details of the IPO:

• IPO dates: May 27 - May 29, 2025
• Listing date: June 3, 2025
• Price band: ₹95–₹105 per share
• Total issue size: ₹168.00 Cr
• Face value: ₹10 per share
• Listing Exchange: BSE, NSE
• Lot Size: 142 Shares
• Promoters: Ram Agarwal, Sonu Ram Agarwal, and Vikas Shyamsunder Agarwal

The minimum investment required to apply for the Prostarm Info Systems IPO is ₹13,490 (142 shares at the lower price band of ₹95 per share). However, to increase your chances of allotment, applying at the upper price band would require ₹14,910 (142 shares at ₹105 per share).

Founded in 2008, Prostarm Info Systems Limited is engaged in designing, manufacturing, and selling power solution products. These include:

• Products: UPS, inverters, solar hybrid systems, lithium-ion battery packs, and stabilisers

   

• Services: Reverse logistics, installation, AMC, rental solutions, and EPC solar rooftop projects

   

• Operations: 3 manufacturing units in Maharashtra with a combined focus on scalability and quality

   

• Clients: Government and institutional customers across critical infrastructure sectors

The primary objectives of the Prostarm IPO are:
 

• To fund working capital requirements
• To prepay or repay certain outstanding borrowings
• To support inorganic growth through acquisitions and strategic initiatives
• For general corporate purposes

The IPO allocation is generally structured as follows (exact breakup not disclosed):

• QIB Shares Offered (QIBs): Not less than 50% of the Issue
• Retail Shares Offered: Not more than 35% of the Issue
• NII (HNI) Shares Offered: Not more than 15% of the Issue

Strengths:

• Strong in-house R&D and design capabilities
• End-to-end control over manufacturing and quality
• Licensed BMS IP from ARAI, with plans for in-house BMS production
• Broad product portfolio serving mission-critical industries
• Wide regional presence and strong market penetration in West and North India
• Growing export ambitions across South Asia and the Middle East
   

Risks:
 

• High customer concentration (70% revenue from top 10 clients)
• Long working capital cycle (123 days) may impact liquidity
• Dependence on third-party and foreign suppliers
• Vulnerability to delays in government and PSU contracts
• All manufacturing units based in Maharashtra – location-specific operational risks

The company has delivered consistent financial growth (INR Cr):

• Basis of allotment: May 30, 2025
• Refund initiation: June 2, 2025
• Shares credited to demat accounts: June 2, 2025
• Listing date: June 3, 2025

Prostarm Info Systems Limited has a strong foundation in India’s critical power infrastructure segment with impressive growth potential. The company’s in-house manufacturing capabilities, broad product range, and planned global expansion make it an attractive bet for investors looking for long-term growth in the energy and power management sector.
 

However, investors should weigh risks like customer concentration and working capital dependency before making a decision. As always, align the investment with your financial goals and risk appetite.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before investing.