Prostarm Info Systems Limited is set to launch its Initial Public Offering (IPO). The IPO will be a ₹168.00 crores fresh issue and will be open for subscription from May 27th, 2025, to May 29th, 2025. In this article, we will discuss the company, the industry, the promoters, key financial numbers, and the risks so that an investor can make an informed decision about investing in the company’s IPO. Let’s dive in.
About the Company
Headquartered in Navi Mumbai, the company was incorporated in 2008 as Prostar Micronova Power Systems Private Limited and was rechristened as Prostarm Info Systems Limited in 2017. Prostarm specializes in designing, manufacturing, assembling, selling, and servicing Energy Storage Equipment and Power Conditioning Equipment, collectively known as Power Solution Products.
Its product portfolio includes:
- UPS systems
- Inverter and lift-inverter systems
- Solar hybrid inverters
- Lithium-ion battery packs
- Servo-controlled voltage stabilizers (SCVS)
- Isolation transformers
The company also undertakes rooftop EPC (Engineering, Procurement, and Construction) projects and sells third-party products like batteries and IT assets. Its clients includes companies from aviation, defense, healthcare, BFSI, telecom, and renewable energy sector.
Sector Overview
Now, let us understand how the sector to which Prostram belongs is performing and the long-term projections for the sector.
Prostarm operates in a segment that is witnessing robust growth due to India’s energy transition and digital infrastructure build-up. As per the RHP:
- The servo stabilizer market is expected to grow from ₹13,455 million in FY24 to ₹23,137 million by FY30, at a CAGR of 46%.
- The solar UPS segment is forecasted to grow at a CAGR of 83%, from ₹3,441 million in FY24 to ₹8,751 million by FY30.
- Growth is further fueled by government-backed initiatives such as:
- Production Linked Incentives (PLI)
- National Solar Mission
- Battery Energy Storage Systems (BESS) under the Panchamrit COP26 targets
India’s energy storage and power backup sector is undergoing rapid transformation, and Prostarm is well-placed to benefit.
Promoters and Their Experience
Prostarm is promoted by:
- Ram Agarwal – Executive Chairman & Whole-time Director
- Sonu Ram Agarwal – Senior Managerial Personnel
- Vikas Shyamsunder Agarwal – Whole-time Director
Each brings with them rich experience in power electronics and business development. Their leadership has seen Prostarm evolve from a vendor-dependent reseller to a full-scale manufacturer with proprietary product lines.
Objectives of the IPO
The net proceeds of the IPO will be utilized for:
-
Funding Working Capital – ₹72.50 crore
-
Repayment or Prepayment of Certain Borrowings – ₹17.96 crore
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Achieving Inorganic Growth and General Corporate Purposes – Up to 35% of Gross Proceeds
This capital allocation suggests Prostarm is gearing up for both organic expansion and strategic M&A activity.
Prostarm Info Systems IPO Details
| IPO Name | Prostarm Info Systems |
| IPO Date | May 27, 2025 to May 29, 2025 |
| Issue Price Band | ₹95 to ₹105 per share |
| Lot Size | 142 Shares |
| Listing At | NSE & BSE |
| Allotment Date | May 30, 2025 |
| Listing Date | Jun 3, 2025 |
| Retail (Min) lot & Amount | 1 lot & ₹14,910 |
| Retail (Max) lots & Amount | 13 lots & ₹1,93,830 |
| Small-HNI (Min) lots & Amount | 14 lots & ₹2,08,740 |
| Small -HNI (Max) lots & Amount | 67 lots & ₹9,98,970 |
| Big-HNI (Min) lots & Amount | 68 lots & ₹10,13,880 |
Financial Snapshot (₹ in Crores)
| Period | Revenue from Operations | Total Income | EBITDA | PBT | PAT |
|---|---|---|---|---|---|
| 9M FY25 (Dec 2024) | ₹268.63 | ₹270.27 | ₹35.89 | ₹29.57 | ₹22.11 |
| FY24 | ₹257.87 | ₹259.23 | ₹36.62 | ₹30.95 | ₹22.80 |
| FY23 | ₹230.36 | ₹232.35 | ₹29.15 | ₹26.19 | ₹19.35 |
| FY22 | ₹171.31 | ₹172.05 | ₹16.57 | ₹14.97 | ₹10.87 |
Key Financial Ratios
| Ratio | 9M FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Basic EPS (₹) | 5.35 | 5.44 | 4.66 | 2.66 |
| Diluted EPS (₹) | 5.21 | 5.44 | 4.66 | 2.66 |
| Return on Net Worth (%) | 23.95 | 32.09 | 39.21 | 32.34 |
| Net Asset Value (₹/Share) | 25.01 | 19.66 | 14.23 | 9.55 |
| EBITDA (₹ in Crores) | ₹35.89 | ₹36.62 | ₹29.15 | ₹16.57 |
| EBITDA Margin (%) | — | ~14.1% | ~12.5% | ~9.6% |
| PAT Margin (%) | — | 8.9% | 8.3% | 6.3% |
| Debt-to-Equity Ratio | — | 0.50x | 0.50x | 0.50x |
Key Insights Based on Financials and Ratios
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Strong Topline Growth: Revenue increased from ₹171.31 crore in FY22 to ₹257.87 crore in FY24, a CAGR of ~23%.
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Robust Profitability: PAT doubled from FY22 to FY24, while EBITDA margins improved year-on-year.
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Efficient Capital Use: High RoNW (32.09% in FY24) shows productive use of shareholder capital.
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Healthy Balance Sheet: Debt remains manageable at a Debt/Equity ratio of 0.50x, with plans to reduce further post-IPO.
Risk Factors
Revenue Concentration: A significant portion of the revenue comes from a few clients. Loss of any of these clients could impact the business.
Technology Risk: The sector requires continuous R&D. Falling behind in innovation could affect competitiveness.
Dependency on Government Tenders: There is major dependency on government contracts for revenue, which are subject to cancellation or delays.
Uncertainty in Inorganic growth: A portion of IPO proceeds is for future acquisitions—these are not yet identified.
Working Capital Dependency: The business has a long operating cycle (123 days as of Dec 2024), which can put pressure on liquidity.
Conclusion – Prostarm Info Systems IPO
Prostarm Info Systems IPO provides investors with an opportunity to invest in a company that’s positioned well in a sunrise industry with strong tailwinds from India’s green energy and digital infrastructure goals. However, with an investment, one should weigh the opportunity against the risks.
If you’re a long-term investor seeking to tap into India’s growing energy storage and power conditioning market, Prostarm is an IPO worth watching closely.
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