The ₹168 crore issue closes for subscription today.
Investors placed bids for nearly 53.52 crore shares, as against the offer size of 1.12 crore shares, according to data from NSE as of 1:30 pm.
The non institutional investors (NII) were leading in the subscription rally, by booking their portion 135.34 times. This was followed by the retail investor category at 27.17 times. The qualified institutional buyers’ quota was booked 18.20 times.
In the grey market, shares of the company were trading at a premium of ₹20. This implies a grey market premium (GMP) of 19% over the IPO issue price of ₹105 apiece.
The Maharashtra-based power solutions products maker is selling its shares in a fixed price range of ₹95 to ₹105 to raise funds through an entirely fresh issue of 1.6 crore equity shares.
About ₹72.5 crore of the issue proceeds will be used for its working capital requirements, and ₹
18 crore for repaying debt.
Further, ₹9 crore will be used for acquisition of further stake of subsidiary to make it a wholly owned subsidiary, and the remaining funds for inorganic growth, and general corporate purposes.
The Agarwal family-owned power electronics solutions competes with listed peers such as Servotech Power System, and Sungarner Energies.
Prostarm Info Systems specialises in designing, manufacturing, and selling Energy Storage and Power Conditioning Equipment, known as “Power Solution Products.”
The company manufactures various Power Solution Products, including UPS systems, inverter systems, solar hybrid inverter systems, lithium-ion battery packs, and voltage stabilisers.
Net profit in the FY24 rose 18% to ₹22.8 crore, compared to ₹19 crore in the previous year. Revenue surged 12% to ₹258 crore during the same period, while EBITDA for the year ended March 2024 climbed 29.8% to ₹35 crore. Margins expanded by 190 basis points to 13.7%, compared to previous fiscal 2023.
Choice Capital Advisors is the book-running lead manager of the Prostarm Info Systems IPO, while Kfin Technologies is the registrar for the issue.
The allotment for the Prostarm Info Systems IPO is expected to be finalised on May 30, while the shares will list on BSE, NSE with a tentative listing date fixed as June 3, 2025.
