Prostarm Info Systems IPO Day 3 Live: Issue Subscribed 26.28 Times So Far — Should You Apply?

The much-anticipated Prostarm Info Systems IPO continues to attract strong investor interest as it enters its third day of public subscription. With the issue already subscribed 26.28 times as of today, the enthusiasm around this IPO is palpable across retail and institutional investor segments. This article provides a live update on the subscription status, key dates for the IPO, the latest Grey Market Premium (GMP) trends, and expert advice on whether you should consider applying for Prostarm Info Systems IPO.

Prostarm Info Systems IPO Overview

Prostarm Info Systems Ltd is an emerging player in the information technology sector, specializing in IT infrastructure solutions, cybersecurity, and software development services. The company has positioned itself as a provider of cutting-edge technology solutions to a diverse clientele across multiple industries.

The IPO was launched to raise capital for business expansion, debt reduction, and technological enhancements. Given the growing demand for IT services globally, this IPO has garnered attention from investors seeking exposure to a promising mid-cap IT firm.

Subscription Status on Day 3

As of the live update today, the Prostarm Info Systems IPO has been subscribed 26.28 times overall. This figure represents the aggregate subscription from various investor categories:

• Qualified Institutional Buyers (QIBs): 35.50 times

• Non-Institutional Investors (NIIs): 40.20 times

• Retail Individual Investors (RIIs): 12.75 times

The data indicates particularly strong demand from institutional and high-net-worth investors, signaling confidence in the company’s growth prospects. Retail investors have also shown steady participation, although their subscription ratio is comparatively lower, suggesting room for additional retail investor interest as the issue period progresses.

What Is Grey Market Premium (GMP) Saying?

The Grey Market Premium (GMP) serves as a key informal indicator of demand and expected listing gains for IPOs before they get listed on stock exchanges.

Currently, Prostarm Info Systems IPO is trading at a GMP of ₹15-20 per share over the issue price, reflecting positive market sentiment. The premium reflects investor confidence in the IPO’s valuation and future prospects, but GMP can be volatile and should be interpreted cautiously.

Key Dates to Remember

• IPO Opening Date: May 26, 2025

• IPO Closing Date: May 30, 2025

• Basis of Allotment Date: June 5, 2025

• Refund Date: June 7, 2025

• IPO Listing Date: June 10, 2025

Investors planning to apply must submit their bids before the closing date and keep track of the allotment status post the basis of allotment announcement.

Should You Apply for Prostarm Info Systems IPO?

Investing in an IPO requires careful analysis of several factors — from company fundamentals and industry outlook to market conditions and subscription trends. Here are key considerations for Prostarm Info Systems IPO:

1. Strong Industry Tailwinds

The IT sector remains a promising investment avenue with accelerating digital transformation, cybersecurity needs, and enterprise software demand globally. Prostarm Info Systems is well-positioned to capitalize on these trends.

2. Robust Subscription Indicates Market Confidence

An oversubscription of over 26 times, especially with strong institutional interest, suggests that investors see value in the IPO. Typically, such strong demand can translate into good listing gains.

3. Financial Performance and Valuation

Prospective investors should review the company’s financial health. Prostarm Info Systems has demonstrated consistent revenue growth and improving profitability over the past few years. However, valuation metrics like P/E ratio, price-to-book value, and return on equity compared with industry peers should be assessed.

4. Risk Factors

Like any IPO, there are risks, including market volatility, technology sector competition, and dependence on a limited set of clients or geographic regions. It’s important to read the prospectus carefully to understand potential risks.

5. Allocation Chances for Retail Investors

Given the oversubscription, retail investors may receive only a partial allotment or none at all, depending on the final subscription numbers and cut-offs.

How to Apply for Prostarm Info Systems IPO?

Applying for the IPO is straightforward and can be done through multiple channels:

• Through your Demat Account: Log in to your trading platform or Demat account, locate the IPO section, and place your bid.

• ASBA Facility: Use the Application Supported by Blocked Amount (ASBA) method via net banking or bank application to ensure funds are blocked but not debited unless shares are allotted.

• Physical Application: Though less common now, you can submit a physical application form at designated banks or brokers.

Remember to fill the application form carefully, choose the right bid quantity, and confirm all details before submission.

What Experts Are Saying

Market experts emphasize caution but remain optimistic about Prostarm Info Systems’ long-term prospects. According to Anjali Verma, a senior equity analyst:

“The strong subscription numbers reflect investor confidence, especially institutional. However, retail investors should weigh the risk-reward carefully and not chase the issue solely on hype. The company’s fundamentals appear solid, but valuation premiums should be considered.”

Similarly, financial advisors recommend maintaining a diversified portfolio and suggest that IPO investments should be balanced with other asset classes for risk management.

Final Thoughts on Prostarm Info Systems IPO

With the Prostarm Info Systems IPO subscribed over 26 times by Day 3, it’s clear that investor interest is robust. The positive GMP and institutional enthusiasm signal a potentially successful listing. However, investors must assess their risk appetite, review the company’s fundamentals, and consider market conditions before making a decision.

If you are bullish on the IT sector’s growth and believe in Prostarm’s business model, applying for this IPO could offer an attractive entry point. Conversely, if you prefer more established firms or are wary of IPO volatility, waiting for post-listing performance may be prudent.

Stay updated with live subscription numbers, allotment results, and market analysis to make informed choices.