Should you subscribe to Prostarm Info Systems IPO? Know what analysts recommend

Prostarm IPO: The initial share sale window of Prostarm Info Systems Ltd (PISL) – a company engaged in the design, manufacture, assembly, sale, service and supply of energy storage equipment and power conditioning equipment –  opened on Tuesday, May 27, to raise Rs 168 crore.

Prostarm Info Systems IPO: Price band, Issue size, BRLMs, registrar, important dates, other details

The price band for the issue has been fixed between Rs 95 and Rs 105 per share with the face value of each share is Rs 10. The IPO consists of a fresh issue of 1.6 crore equity shares, with no offer for sale component.

The total issue size is estimated to be between Rs 152 crore and Rs 168 crore. Investors can apply for 142 shares in a single lot, and in multiples thereof. 

The bidding process will be closed on Thursday, May 29, 2025.

Allocation structure

Here is a summary of the issue allocation across different categories:

50 per cent for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors, and 15 per cent for Non-Institutional Investors (NIIs).

BRLMs, Registrar

The book-running lead manager (BRLM) of the issue is Choice Capital Advisors, while KFin Technologies has been appointed as the official registrar.

Should you subscribe?

SBI Securities' analysts have recommended subscribing to the issue with highlighting the company's diversified product applications and consistent growth trajectory.

At the upper band price of Rs 105, the stock is valued at 20.2x FY25E EPS, which SBI believes is fair when compared with peers in the segment.

While Bajaj Broking said the IPO is fully priced, and noted that the company’s ability to offer integrated services under one roof as a key differentiator that has improved margins. The brokerage is recommends subscribing the issue with a long-term investment horizon.

Another brokerage SMC Global Securities calls PISL a compelling opportunity, driven by strong financials, client retention, international expansion, and sector growth in power solutions.

While the brokerage also highlights risks such as client concentration and working capital intensity. According to the brokerage, the order book and fundamentals outweigh the concerns.

About Prostarm Info Systems

PISL provides energy storage equipment and power conditioning systems. Its solutions are used across industries such as data centers, hospitals, airports, commercial buildings, and renewable energy systems and it also offers associated services under one roof.

(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)