Prostarm Info Systems Ltd, a Navi-Mumbai headquartered pan-Indian power solution products company, today announced it has received in-principle approval from market regulator, Securities Exchange Board of India (SEBI) to launch its initial public offering. The issue comprises 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 KF in 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.
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.
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. Prostarm Info Systems’s promoter group comprises of Ram Agarwal, Sonu Ram Agarwal, and Vikas Shyamsunder Agarwal,who hold 30% (over 1.28 crore shares), 20% (over 85.74 lakh shares), and 33% (over 1.41 crore shares), respectively. The company employs 411 people, including 189 on a contractual basis.