Shares of Prostarm Info Systems made a healthy debut on the bourses on June 3, listing at ₹125 on the BSE, a premium of 19% over its IPO price of ₹105. On the NSE, the stock opened at ₹120, delivering a 14.29% listing gains.
Even though the company’s listing gains were rather decent, it still fared better than grey market expectations. Ahead of its listing, Prostarm’s unlisted shares were trading at around ₹117 in the grey market, suggesting a debut with over 11% listing gains, according to data from Investorgain.
Post listing, shares of Prostarm initially extended gains to hit a record high of ₹130 on the BSE and ₹126 on the NSE. However, profit booking soon seeped into the counter, pulling the stock off its highs.
The company’s ₹168-crore IPO, which ran from May 27-29 also met with an overwhelming response as it was subscribed over 97 times. Against an offer size of 1.12 crore shares, the issue attracted bids for nearly 109 crore shares. Non-Institutional Investors (NIIs) led the charge, subscribing their portion by an a staggering 222 times, followed by Qualified Institutional Buyers (QIBs) at 104 times. Retail investors also showed strong interest, subscribing 39.5 times.
Prostarm’s IPO was entirely a fresh issue of 1.6 crore equity shares, offered in a price band of ₹95–105. The company also raised ₹50.4 crore through its anchor book on May 26, just a day before its IPO opened for public subscription. It allotted 48 lakh equity shares to anchor investors at ₹105 per share.
Among the eight institutional investors who participated in the anchor round were Chhattisgarh Investment, Astrone Capital, Steptrade Revolution Fund, Abundantia Capital, and Swyom India Alpha Fund.
Prostarm Info Systems is based in Maharashtra, provides power solution products and is best known for its inverter systems. The UPS and inverter manufacturer intends to utilise the proceeds from its public offer to fund its working capital requirements, repay debt, and fuel inorganic growth through unidentified acquisitions.
