Prostarm Info System's initial public offering (IPO) entered its second day of bidding on May 28 (Wednesday). The public offering witnessed decent response from investors and received bids for 11,07,87,548 shares as against 1,12,00,000 shares on offer, as per Bombay Stock Exchange (BSE) data.
The issue was fully booked on the very first day of bidding period itself. As of 2:55 pm, the non-institutional investor (NII) category received bids for 19.60 times its portion, whereas the retail individual investor (RII) category saw bids for 11.31 times its allotted quota. The qualified institutional buyer (QIB) category received bids for 0.94 times its portion.
The bidding period will close tomorrow, May 29, 2025 (Thursday). The company is raising Rs 168 crore via the public offering, which comprises only a fresh issue of 1.60 shares with no offer for sale (OFS). The tentative date of listing is currently fixed for next week, June 3, 2025 (Tuesday).
Prostarm Info System IPO GMP
GMP or grey market premium refers to the price level at which the shares of the company trade in the grey market, before hitting the official bourses (BSE and NSE).
As of 03:15 pm, the shares of Prostarm Info Systems were trading at a GMP of Rs 19, commanding a premium of just 18.10%. On the first day of the IPO's bidding window, the premium stood at around 25%.
Choice Capital Advisors Pvt. Ltd. is the sole book-running lead manager of the public offering. The company will use the proceeds to fund working capital requirements, prepayment of some borrowing and other general corporate purposes.
Bajaj Broking has suggested a 'Subscribe for long term' rating on the IPO. "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," the brokerage firm said in its report.
