By IndiaHub 
The company’s shares, which were commanding a grey market premium (GMP) of Rs 25 just a day earlier, are now trading at a premium of Rs 19. This decline in GMP comes even as the IPO saw high bidding activity on Day 2.
The offer, which opened for subscription on May 27 and closes on May 29, is a book-building issue with a price band of Rs 95 to Rs 105 per share. Investors can apply in lots of 142 shares, requiring a minimum investment of Rs 14,910 at the upper price band. Shares are expected to be listed on June 3 on the BSE and NSE.
Despite the fall in GMP, overall subscription data tells a bullish story. The IPO was subscribed more than 11 times overall, with particularly heavy demand coming from high net-worth individuals.
The NII segment saw a 22.79 times subscription rate, while retail investors bid 12.2 times their quota. The QIB portion, however, was just about fully subscribed at 0.99 times, with limited participation from mutual funds and foreign institutions.
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Founded in 2008, Prostarm Info Systems designs and manufactures power conditioning equipment including UPS systems, inverters, lithium-ion battery packs, and solar hybrid solutions.It serves a wide range of sectors such as aviation, defence, banking, education, and healthcare. Key clients include Railtel, Airports Authority of India, and NTPC Vidyut Vyapar Nigam.The IPO proceeds will be used to support working capital needs, repay debt, fund inorganic growth, and meet general corporate requirements. Choice Capital Advisors is the lead manager and KFin Technologies is the registrar to the issue.
From a fundamentals perspective, the company has been growing steadily. Revenue increased from Rs 232 crore in FY23 to Rs 259 crore in FY24, and it has already posted Rs 270 crore in the first nine months of FY25. Net profit for 9MFY25 stood at Rs 22.11 crore, nearly matching the full-year FY24 profit of Rs 22.80 crore.
Bajaj Broking recommends subscribing to the IPO with a long-term view, citing the company’s leadership in integrated power solutions and its strong financial performance. While the short-term listing premium appears to be moderating, Prostarm’s business fundamentals and expanding market reach keep long-term prospects intact.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)