Prostarm Info Gets In-Principle Approval From SEBI To Launch IPO

Navi-Mumbai-based pan-Indian power solution products company, Prostarm Info Systems has received in-principle approval from market regulator, Securities Exchange Board of India (SEBI) to launch its initial public offering (IPO). The issue comprises a fresh issue of up to 1,60,00,000 Equity Shares of face value ₹10 each and will be listed on BSE and NSE. Choice Capital Advisors Private Limited is the book-running lead manager,  while KFin Technologies Ltd is the issue’s registrar.

As per the DRHP, the company plans to use the net proceeds of the issue for various activities such as funding working capital requirements, prepayment or repayment of certain outstanding borrowings, achieving inorganic growth opportunities, strategic initiatives, and general corporate purposes.

The Issue comprises fresh issues of up to 1,60,00,000 Equity Shares of face value  ₹10 each. To utilise its net proceeds from the issue to fund working capital  requirements, prepay or repay certain outstanding borrowings, pursue  strategic growth through inorganic initiatives, and general corporate  purposes 

Established in 2008, the Navi-Mumbai-headquartered company operates  three manufacturing facilities in the state of Maharashtra besides a network  of 22 branch offices and 2 storage facilities across 17 states and one union  territory in India   It manufactures UPS systems, inverter systems, lift inverter systems, solar  hybrid inverter systems, lithium-ion battery packs, servo-controlled voltage stabilizers, isolation transformers, and other power solution products  

Also offers value-added services such as rooftop solar EPC services and  A&M solutions. Caters to diverse end-use industries such as healthcare,  aviation, research, BFSI, railways, defense, security, education, renewable energy, information technology, and oil & gas. Choice Capital Advisors Private Limited is the Book Running Lead Manager  to the Offer, while KFIN Technologies Limited are the Registrar to the Offer 

Financial 

For the fiscal year 2024, the company’s net profit rose 18% to Rs 22.80 crore from Rs 19.30 crore in the previous fiscal year. Revenue from operations increased by 12% to Rs 257.9 crore during the period under review, while EBITDA (earnings before interest, tax, depreciation, and amortisation) jumped 30% to Rs 35.3 crore, and margin expanded by 190 bps to 13.7% compared to the previous fiscal year 2023. UPS systems accounted for 39% of the company’s revenues,  while Third-Party Power Solution Products accounted for another 30% in FY24.

About The Company 

Founded by Ram Agarwal, a first-generation entrepreneur with 16+ years of experience in electrical and electronic control, energy storage, power conditioning, and power consumption solutions industry.  Established in 2008, the Thane-headquartered company operates three manufacturing facilities in Maharashtra besides a network of 22 branch offices and 2 storage facilities across  17 states and one union territory in India. The company manufactures several power solution products under the Prostarm brand, such as UPS systems,  inverter systems, lift inverter systems, solar hybrid inverter systems, lithium-ion battery packs, servo-controlled voltage stabilizers, and isolation transformers. It also undertakes rooftop solar photovoltaic power plant projects on an EPC basis, as well as AMCs.