Prostarm Info Systems IPO Day 2: Subscription status, GMP trends, price band to review — Should you apply?

Prostarm Info Systems’ initial public offering was fully subscribed on the second day of bidding, with the overall subscription reaching 9.7 times as of 2:29 PM on Wednesday, May 28.

Non-institutional investors (NIIs) led the demand, subscribing to 18.96 times their allocated quota, while retail investors subscribed 10.75 times and qualified institutional buyers (QIBs) had subscribed 93%. The Rs 168 crore offering closes on May 29, with listing scheduled for June 3.

GMP points to positive debut

In the grey market, Prostarm Info Systems’ unlisted shares were commanding a premium of Rs 19 on Wednesday, pushing the expected listing price to around Rs 124, an 18% premium over the upper end of the IPO price band at Rs 105, according to sources tracking grey market activity.

Key offer details

The IPO is entirely a fresh issue aimed at raising Rs 168 crore. The price band is set at Rs 95–105 per share, and investors can bid in lots of 142 shares, requiring a minimum investment of Rs 14,910 at the upper end.

Proceeds will be used to fund working capital requirements, repay certain borrowings, explore inorganic growth, and for general corporate purposes. Choice Capital Advisors is managing the issue, and KFin Technologies is acting as the registrar.

Prostarm’s shares are expected to list on both the BSE and NSE on June 3.

Should you subscribe? Analyst view

Brokerages appear cautiously optimistic. Bajaj Broking has issued a long-term subscribe call on the IPO, citing strong revenue momentum and operational performance.

“Prostarm has a strong balance sheet, with robust cash flow from operations and a healthy return on net worth. The IPO is fully priced, but its leadership in integrated power solutions and growing demand for energy infrastructure make it a compelling story for patient investors,” Bajaj Broking said.

The company’s financials reflect a growth trajectory: revenue rose from Rs 232 crore in FY23 to Rs 259 crore in FY24, and it reported Rs 270 crore in income during the first nine months of FY25. Net profit for the nine-month period stood at Rs 22.11 crore, nearly matching FY24’s Rs 22.80 crore.

Business snapshot

Founded in 2008, Prostarm designs and manufactures energy storage and power conditioning systems including UPS units, inverters, lithium-ion battery packs, and voltage stabilisers. It also offers solar hybrid solutions, reverse logistics, and EPC services for rooftop solar installations.

Its clients span a wide range of sectors—from aviation and defence to banking and healthcare—with names like Airports Authority of India, Railtel, and NTPC Vidyut Vyapar Nigam among its portfolio.

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