Prostarm Info Systems Ltd, a Navi-Mumbai based power solution products company, announced its receipt of in-principle approval from the Securities Exchange Board of India (SEBI) to launch its initial public offering (IPO). The IPO will involve the fresh issue of up to 1.6 crore equity shares of face value ₹10 each, to be listed on BSE and NSE. Choice Capital Advisors Private Limited will serve as the book-running lead manager, with KFin Technologies Ltd as the issue's registrar.
Prostarm Info Systems Ltd operates manufacturing facilities and offices across India, producing ISO-certified power solutions like UPS systems and lithium-ion battery packs. In FY24, the company served 700+ clients, including L&T and Tata Power, with net profit rising 18% and revenue increasing by 12% to Rs 257.9 crore.
The company plans to utilize the net proceeds from the IPO for funding working capital requirements, prepayment or repayment of certain outstanding borrowings, pursuing inorganic growth opportunities, strategic initiatives, and general corporate purposes.
India's EV and lithium-ion battery manufacturing sector is rapidly expanding, driven by government incentives and increasing demand. The 2025 budget eliminated import duties on key materials for lithium-ion batteries and capital goods for their production. This move is expected to boost domestic manufacturing and reduce costs.
Several companies, including Ola Electric and Tata Group, are investing heavily in lithium-ion cell production. The government's focus on clean technology, including EV batteries, motors, and controllers, further supports this growth. India aims to become a global hub for EV and battery manufacturing, reducing its reliance on imports and promoting sustainable transportation.
The government's focus on clean technology, including EV batteries, motors, and controllers, further supports this growth. India aims to become a global hub for EV and battery manufacturing, reducing its reliance on imports and promoting sustainable transportation. The sector is expected to create jobs and contribute to the country's economic growth, benefiting companies like Prostarm Info Systems Ltd for a more favorable business environment and driving demand for their products.