Investor enthusiasm is rising as Prostarm Info Systems Ltd’s IPO gains significant traction on Day 2 of bidding. With solid financials, a growing product portfolio, and long-term market potential, many are eyeing this offering as a promising addition to their investment strategy.
Prostarm Info Systems IPO Sees Strong Demand Across Categories
As of 10:49 AM on Day 2 (May 28), the Prostarm IPO has been subscribed 5.71 times, with investors bidding for over 6.39 crore shares against the 1.12 crore shares on offer. Retail investors have subscribed 6.61 times, while the Non-Institutional Investor (NII) segment saw an impressive 11.14 times subscription. However, interest from Qualified Institutional Buyers (QIBs) remains limited at 0.07 times.
Launched on May 27, the Rs 168 crore public issue will close on May 29. The price band is set at Rs 95–105 per share. On Day 1, the IPO had already seen a 3.61 times subscription — a clear sign of early momentum.
GMP Trends and Market Sentiment Around Prostarm IPO
Meanwhile, the Prostarm IPO grey market premium (GMP) stands at Rs 125 per share — reflecting a 19.05% premium over the upper end of the IPO price. This signals strong listing expectations ahead of the tentative debut on June 3. While GMP fluctuates with market sentiment, the current levels suggest investor confidence in the brand’s future performance.
Prostarm’s upcoming listing on both the BSE and NSE has also contributed to increased visibility, helping fuel momentum in the unlisted space.
Expert Recommendations: Should You Subscribe to the Prostarm IPO?
Leading brokerage firms remain optimistic about Prostarm’s potential. Anand Rathi and Arihant Capital both recommend a “Subscribe for long-term” strategy, citing the company’s diversified customer base, wide-ranging power solutions, and strategic expansion plans.
SMIFS highlights the company’s low current capacity utilization as an upside factor, allowing room for higher margins and earnings growth. Their analysis indicates the IPO is undervalued relative to peers, despite strong historical growth metrics.
SBI Securities finds the Prostarm IPO valuation at 20.2x FY25E EPS attractive, especially when considering its impressive compound annual growth rates (CAGR): 23% in revenue, 49% in EBITDA, and 43% in profit after tax over FY22–FY24. Other firms like ProfitMart and Bajaj Broking have echoed similar long-term subscribe calls, pointing to a capable management team and robust operating model.
Key IPO Details and Strategic Outlook
The issue comprises a fresh sale of 1.6 crore equity shares. Out of the expected proceeds, Rs 72.5 crore will fund capital expansion, Rs 17.95 crore will be used to reduce debt, and the remaining amount will go toward inorganic growth and general corporate purposes.
Prostarm Info Systems specializes in integrated power solutions, manufacturing UPS systems, lithium-ion battery packs, stabilizers, and other energy infrastructure equipment. With over 700 clients — including marquee names like Larsen & Toubro, Tata Power, and Bajaj Finance — the company operates three facilities in Maharashtra and serves critical sectors such as renewable energy, IT, healthcare, and defense.
The IPO is being managed by Choice Capital Advisors, with KFin Technologies acting as registrar. As interest grows, all eyes are on how Prostarm performs post-listing — and whether it will deliver on its long-term growth narrative.