Maharashtra-based power solutions products manufacturing company Prostarm Info Systems has filed draft red herring prospectus (DRHP) with the capital markets regulator SEBI as it plans to mobilise funds from an initial public offering.
The IPO comprises an entirely fresh issue of 1.6 crore equity shares by the company.
The company may also consider issuance of 10 lakh equity shares in a pre-IPO placement, before the launching the public issue. If the company manages to raise funds via the pre-IPO placement, the said amount will be reduced from the fresh issue.
It manufactures several power solution products such as UPS system, inverter system, lift inverter system, solar hybrid inverter systems, lithium-ion battery packs, servo-controlled voltage stabilisers, and isolation transformers under the PROSTARM brand. It also undertakes rooftop solar photovoltaic power plant projects on EPC basis.
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With three manufacturing units, the energy storage and power conditioning equipments maker is an empanelled vendor for Airports Authority of India, Central Public Works Department, Patna Bihar; Public Works Department, New Delhi; West Bengal Public Health Engineering Department; West Bengal Electronic Industry Development Corporation; Telangana State Technology Services; Railtel Corporation of India; and NTPC Vidyut Vyapar and Nigam.
Prostarm Info Systems will utilise Rs 72.5 crore out of the net fresh issue proceeds for its working capital requirements, and Rs 18 crore for repaying debt. Further, Rs 9 crore will be used for acquisition of further stake of subsidiary to make it a wholly owned subsidiary, and the remaining funds for inorganic growth, and general corporate purposes.
The Agarwal family-owned power electronics solutions competes with listed peers like Servotech Power System, and Sungarner Energies. The financial performance so far has been good in the reported past years in the draft papers.
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The net profit in the fiscal 2024 grew by 18 percent to Rs 22.8 crore compared to Rs 19.3 crore in the previous year. Revenue from operations increased by 12 percent to Rs 257.9 crore during the same period, while EBITDA (earnings before interest, tax, depreciation, and amortisation) for the year ended March 2024 jumped 29.8 percent to Rs 35.3 crore and margin expanded by 190 bps to 13.7 percent compared to previous fiscal 2023.
Choice Capital Advisors is the sole merchant banker to the issue.
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