Prostarm Info Systems IPO Day 2: GMP falls despite healthy subscription from investors

Prostarm Info Systems’ Rs 168 crore IPO has drawn steadfast involvement from retail and non-institutional investors, but the enthusiasm successful the grey marketplace has started to cool.

The company's shares, which were commanding a grey marketplace premium (GMP) of Rs 25 conscionable a time earlier, are present trading astatine a premium of Rs 19. This diminution successful GMP comes adjacent arsenic the IPO saw precocious bidding enactment connected Day 2.

The offer, which opened for subscription connected May 27 and closes connected May 29, is simply a book-building contented with a terms set of Rs 95 to Rs 105 per share. Investors tin use successful tons of 142 shares, requiring a minimum concern of Rs 14,910 astatine the precocious terms band. Shares are expected to beryllium listed connected June 3 connected the BSE and NSE.

Despite the autumn successful GMP, wide subscription information tells a bullish story. The IPO was subscribed much than 11 times overall, with peculiarly dense request coming from precocious net-worth individuals.

The NII conception saw a 22.79 times subscription rate, portion retail investors bid 12.2 times their quota. The QIB portion, however, was conscionable astir afloat subscribed astatine 0.99 times, with constricted information from communal funds and overseas institutions.

Founded successful 2008, Prostarm Info Systems designs and manufactures power conditioning instrumentality including UPS systems, inverters, lithium-ion artillery packs, and star hybrid solutions.

It serves a wide scope of sectors specified arsenic aviation, defence, banking, education, and healthcare. Key clients see Railtel, Airports Authority of India, and NTPC Vidyut Vyapar Nigam.

The IPO proceeds volition beryllium utilized to enactment moving superior needs, repay debt, money inorganic growth, and conscionable wide firm requirements. Choice Capital Advisors is the pb manager and KFin Technologies is the registrar to the issue.

From a fundamentals perspective, the institution has been increasing steadily. Revenue accrued from Rs 232 crore successful FY23 to Rs 259 crore successful FY...