The primary market is back in action. May was packed with IPO offerings and listings, with last week seeing four IPOs alone. Prostarm Info Systems IPO opened its IPO bidding on May 27 and will close its three-day subscription window on May 28.
As of the latest, the grey market premium for Prostarm Info Systems IPO is up 23%, or Rs 25 above the issue price, estimating a listing price of Rs 130.
Let’s take a look at key things to know
Prostarm Info Systems IPO size
The mainboard IPO is a book-building issue aiming to raise Rs 168 crore. It is an entirely fresh issue of 1.60 crore shares, meaning the total proceeds will go to the company. The IPO bidding opened on May 27.
Prostarm Info Systems IPO price band, allotment, listing date
The investors can place bids for the IPO in a range of Rs 95 to Rs 105 per equity share. The last day to bid for the IPO of Prostarm Info Systems is Thursday, May 29. The allotment for the IPO is likely to be finalised by May 30. The IPO is expected to hit the D-Street on June 03, as per the tentative schedule.
Prostarm Info Systems IPO bid size
A retail investor needs to bid for at least 142 shares in an application, requiring an investment of Rs 13,490 and Rs 14,910 (at the upper price band).
However, the small non-institutional investors (NII) need to bid for a minimum of 14 lots of 1,988 shares, amounting to Rs 2.08 lakh and for big NII, it is 68 lots of 9,656 shares, equalling Rs 10.13 lakh.
Prostarm Info Systems IPO: Day 01’s early subscription status
The IPO has been fully subscribed in the initial bidding hours of day 01 itself, 1.48 times. The retail category was subscribed 1.95 times, while the NII portion was booked 2.36 times. The qualified institutional buyers (QIBs) are yet to jump in.
Prostarm Info Systems IPO: Purpose of fundraising
Prostarm Info Systems in its DRHP noted that, out of the total raised proceeds, Rs 72.5 crore will be used to pay certain outstanding borrowings and Rs 18 crore will be utilised for funding capital expenditure. Some parts of the IPO money will go to achieve inorganic growth through unidentified acquisitions and other strategic initiatives.
Prostarm Info Systems IPO: Bajaj Broking’s view
“The company marked growth in its top and bottom lines for the reported periods. The sudden boost in its bottom line 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 the long term,” said Bajaj Broking in an IPO note.
About Prostarm Info Systems
Prostarm Info Systems is in the business of designing, manufacturing, assembling, selling, servicing and supplying Energy Storage Equipment and Power Conditioning Equipment.
It has manufactured Power Solution Products that comprise UPS systems, lift inverter systems, solar hybrid inverter systems, inverter systems, lithium-ion battery packs, isolation transformers, servo-controlled voltage stabilisers, and other power solution products.
Prostarm Info Systems IPO: Book runner and registrar
Choice Capital Advisors is the book-running lead manager of the issue, while Kfin Technologies is the registrar.