Prostarm Info Systems IPO Day 1 Live: GMP, Subscription Status, Review & Key Insights – Should You Apply?

Prostarm Info Systems IPO Day 1 Live Updates: GMP, Review, Subscription, and Should You Apply?

The SME IPO market continues to buzz with new listings as Prostarm Info Systems Limited opens its Initial Public Offering today, May 27, 2025. This IPO has stirred interest among retail and HNI investors alike due to its niche segment focus and promising financials. In this in-depth article, we bring you live Day 1 insights into its GMP (grey market premium), subscription status, expert review, business model, risks, and our verdict on whether you should apply or avoid this issue.

Company Overview: Who is Prostarm Info Systems?

Prostarm Info Systems Limited is an Indian power solutions company that offers uninterruptible power supply (UPS) systems, power distribution units, solar inverters, batteries, and more. The firm is steadily growing in the data center and enterprise IT infrastructure segment by supplying power backup solutions for mission-critical applications.

With clients spanning government, healthcare, IT, BFSI, and education sectors, Prostarm has built a robust channel partner network. The company operates on both direct sales and channel distribution models.

IPO Details at a Glance

Business Model Analysis

Prostarm’s business model revolves around customized power solutions with high uptime and energy efficiency. The company provides services such as:

• Offline and Online UPS

• Batteries for critical loads

• Solar-based hybrid solutions

• Annual Maintenance Contracts (AMC)

• Turnkey power projects for data centers

The firm benefits from India's push for data localization, increased digitization, and demand for uninterrupted power, especially in Tier 2 and Tier 3 cities.

Financial Performance Snapshot

Here’s a look at the company’s financials over the last three years:

• The revenue CAGR stands at 18.9% over 3 years.

• The profit after tax (PAT) has more than quadrupled in the same period.

• The company has improved its margins consistently.

Verdict: Healthy growth, but scale is still modest.

Grey Market Premium (GMP) Update

As of Day 1 morning, Prostarm Info Systems IPO GMP is hovering around ₹15–₹18, which suggests a listing gain potential of ~20–22% over the issue price of ₹81.

However, GMP should be taken with caution as it’s an unregulated indicator and often volatile in SME listings.

Subscription Status: Day 1 Live Update

Live Subscription Data as of May 27, 2025, 12:30 PM IST:

Note: Subscription numbers are moving quickly, and demand is clearly strong on Day 1 itself, hinting at potential oversubscription by Day 3.

Peer Comparison

Though Prostarm is much smaller in scale compared to its listed peers, its P/E ratio is lower, making it moderately valued in the SME segment.

 Risks to Consider

1. Dependence on Government Orders: A large chunk of Prostarm’s revenue comes from public sector contracts, which can be delayed or unpredictable.

2. Limited Geographic Presence: While expanding, the firm still lacks penetration in northern and northeastern India.

3. SME Listing Volatility: SME stocks tend to be illiquid and volatile post listing. Investors must assess their risk appetite.

Expert Opinions & Analyst Views

Several analysts tracking SME IPOs are cautiously optimistic. Here's a summary of opinions:

• Angel One: “Strong growth, decent margins, reasonable valuations. Apply with a medium-term horizon.”

• Hem Securities: “Positive GMP, solid subscription cues; good for listing gains.”

• Retail Investor Forums: “Backed by increasing tech demand and digitization, the sector outlook is favorable.”

Should You Apply for Prostarm Info Systems IPO?

 Apply if:

• You are looking for listing gains.

• You believe in the long-term digitization trend in India.

• You want exposure to a niche yet growing sector.

• You’re comfortable with SME IPOs and their volatility.

 Avoid if:

• You are risk-averse or a conservative investor.

• You need immediate liquidity (as SME stocks may have low trading volumes).

• You're new to SME investing and don't understand market behavior in this space.

Application Strategy for Retail Investors

• Apply only 1 lot to maximize chances of allotment.

• Ensure UPI approval well before 5 PM on May 29, 2025.

• Use different PANs/accounts if you’re applying via family members.

Important Dates to Remember

Apply or Avoid?

Prostarm Info Systems' IPO comes with a balanced risk-reward ratio. The company is carving a niche in the power solutions space and growing steadily. Backed by strong subscription, healthy GMP, and improving financials, this SME IPO looks appealing for both listing gains and long-term hold, depending on your investment objective.