Prostarm Info Systems IPO: Files DRHP to SEBI for Upcoming IPO

Prostarm Info Systems Private Limited has filed DRHP with SEBI for its upcoming IPO. This upcoming IPO is offering entirely a fresh issue of up to 1.60 crore equity shares.

The total aggregate size of a public issue in rupees has not yet been disclosed, whereas the total number of equity shares that will be issued by the company is 1,60,00,000.

This IPO will follow the book-building process, with not more than 50% of the offer reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and not less than 35% for retail investors is reserved.

Prostarm Info Systems IPO's open date and close date have not yet been declared. The price band & lot size will be revealed soon by the company. The Shares to be offered through the Red Herring Prospectus are proposed by the company to be listed on the BSE and NSE Exchanges.

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About Prostarm Info Systems Limited

Prostarm Info Systems Limited was established on January 11, 2008, in Navi Mumbai, India and is a leading manufacturer. The company manufactures UPS systems, solar inverters, and energy storage solutions for a cross-section of industries, including healthcare, banking, and logistics. Prostarm, which operates with an authorized capital of INR 61 crore and a paid-up capital of INR 42.87 crore, had operating revenues lying between INR 100 crore and 500 crores for the fiscal year closing March 31, 2022. This company has witnessed gigantic growth, with EBITDA increased by 54.7% and net worth increased by 40.48% as compared to the previous year. Prostarm, a company led by Chief Executive Ram Agarwal, should strive to become a power solutions leader that delivers quality services to customers with proper ethical practices.

Prostarm Info Systems IPO Objectives

The company proposes to utilize the net proceeds from the issue for funding working capital requirements, prepayment or repayment of certain outstanding borrowings, acquiring further stake in its subsidiary to make it wholly owned, and achieving inorganic growth through acquisitions, strategic initiatives, and general corporate purposes.

Financials of Prostarm Info Systems Limited

Prostarm Info Systems financials show strong performance. However, total borrowings showed a slightly increase during the period ended March 31 2024, compared to March 31 2023:

1. Assets increased from Rs 1,553.87 crores in March 2023 to Rs 2,030.45 crores in March 2024, a 30.67% increase.
2. Revenue increased from Rs 2,303.63 crores to Rs 2,578.70 crores, an 11.94% increase.
3. Profit After Tax (PAT) increased from Rs 193.46 crores in March 2023 to Rs 228.25 crores in March 2024, a 17.99% increase.
4. Total Borrowing increased from Rs 248.52 crores to Rs 434.70 crores, a 74.92% increase.

Lead manager(s) and Registrar of Prostarm Info Systems IPO

The IPO is managed by Choice Capital Advisors Private Limited, which is the book-running lead manager for this public issue. The company has appointed KFin Technologies Limited as the registrar for this public issue.

Promoters of Prostarm Info Systems

Ram Agarwal, Sonu Ram Agarwal and Vikas Shyamsunder Agarwal are the identifiable promoters (s) of the company. They collectively held 83% of the company's shares. However, post-IPO changes in their shareholding have not yet been disclosed in the Prospectus filed by the company with SEBI. To read the full DRHP, click here.

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