Prostarm Info Systems initial public offer (IPO) got subscribed over 12.65 times on the second day of subscription on Wednesday. The issue was fully booked on the first day of bidding on Tuesday, ending with 3.54 times subscription. The initial share sale by the integrated power solution company received bids for 14.16 crore shares against 1.12 crore shares on offer, as per NSE data.
The Rs 168-crore Prostarm Info Systems IPO will conclude on May 29.
The quota for non-institutional investors received 27.23 times subscription, while the category for Retail Individual Investors (RIIs) got subscribed 13 times. The portion for Qualified Institutional Buyers (QIBs) received 1x subscription.
Prostarm Info Systems IPO: Should you subscribe?
The analysts at the Bajaj Broking recommended to subscribe the IPO with a long-term perspective. It said, "The company marked growth in its top and bottom lines for the reported periods. The sudden boost in its bottom lines from FY23 onward is on account of its ability to provide all related services under one roof. Based on its financial data, the IPO appears fully priced. Investors may lap it up for long term."
Gaurav Garg, Lemonn Markets Desk, noted that the Prostarm Info Systems Ltd offers investors a compelling play on India's expanding power backup and clean energy infrastructure. The company combines a strong financial track record, scalable business model, diversified offerings, and robust return ratios with a valuation that appears attractive relative to peers.
"Given the promising industry outlook, well-established operations, and reasonable pricing, we recommend subscribing to the IPO for investors with a medium to long-term investment horizon. The company is well-poised to benefit from structural tailwinds in energy storage and green energy solutions, backed by solid execution and a growing customer base," he added.
The IPO has a fresh issue of 1.6 crore equity shares. The price band for the offer is fixed at Rs 95-105 per share. The company intends to utilise Rs 72.50 crore of the total IPO proceeds towards funding capital requirements of the company, Rs 17.95 crore for payment of debt and the remaining capital will be used for achieving inorganic growth through unidentified acquisitions and other strategic initiatives as well as for general corporate purposes.
Shares of the company are commanding a GMP of about 24 percent in the unofficial market, according Investorgain.
Those who subscribed to the issue can check their allotment status on the official registrar, Kfin Technologies Ltd on May 30. Shares of the company will be listed on the BSE and NSE on June 3.
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