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Prostarm Info Systems made a robust entry into the stock market today (June 3, 2025), listing at Rs 125 on the BSE, marking a 19 per cent premium over its IPO price of Rs 105.
On the NSE, the stock opened at Rs 120, reflecting a 14.3 per cent gain. This performance highlights strong investor interest in the company's offerings, particularly in power backup and energy storage solutions.
IPO highlights
- Issue size: Rs 168 crore (entirely fresh issue)
- Price band: Rs 95-105 per share
- Subscription: 97.1 times overall
- Qualified Institutional Buyers (QIBs): 104.5x
- Non-Institutional Investors (NIIs): 222.1x
- Retail Investors: 39.3x
- Listing date: June 3, 2025
- Use of proceeds: Working capital, debt repayment, inorganic growth and general corporate purposes
Grey market premium (GMP) trends
Initially, Prostarm's IPO commanded a grey market premium (GMP) of Rs 25, indicating strong expectations for listing gains. However, as the IPO progressed, the GMP cooled down to Rs 12, reflecting tempered investor enthusiasm in the unofficial market.
Financial snapshot
| Metric | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue (Rs crore) | 171 | 230 | 258 |
| Net profit (Rs crore) | 11 | 20 | 23 |
| Net worth (Rs crore) | 41 | 61 | 84 |
| ROE (%) | 27.8 | 39.2 | 32.1 |
| ROCE (%) | 31.8 | 37.9 | 30.7 |
| Debt-to-equity ratio | 0.1 | 0.4 | 0.5 |
About Prostarm Info Systems
Established in 2008 and headquartered in Thane, Maharashtra, Prostarm Info Systems specialises in designing, manufacturing, and supplying energy storage and power conditioning equipment.
Prostarm serves a diverse clientele, including sectors such as healthcare, banking, defence, IT, and renewable energy. Notable clients include the Airports Authority of India, Railtel Corporation and NTPC Vidyut Vyapar Nigam.
The bottom line
Prostarm Info Systems’ successful listing and strong subscription figures highlight investor confidence in the company's business model and growth prospects. The firm's focus on power solutions and renewable energy aligns with India's increasing demand for reliable and sustainable energy infrastructure.
However, the cooling GMP and rising debt levels warrant cautious optimism. Investors should closely monitor the company's debt management strategies and its ability to sustain profitability in a competitive market.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a grain of salt and conduct your own research or consult a financial advisor before making any investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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