Prostarm Info Systems IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is engaged in designing, manufacturing, assembling, sale, service and supply of Energy Storage Equipment and Power Conditioning Equipment (“Power Solution Products”) in India. Its manufactured Power Solution Products comprise of UPS system, inverter system, lift inverter system, solar hybrid inverter systems, lithium-ion battery packs, servo-controlled voltage stabilisers (“SCVS”), isolation transformers and other power solution products. It offers both customized and standard products and solutions, manufactured and assembled at our inhouse facilities and also through third party contract manufacturers. In addition to its core manufactured products, it also deal in sale and supply of third party power solution products such as batteries, reverse logistics/end-oflife products and other assets such as IT Assets, solar panel and allied products.It also undertakes rooftop solar photovoltaic power plant projects across India on EPC basis. It specializes in power electronics solutions, offering reliable and affordable products to businesses across various 199 sectors and have built a reputation for delivering dependable UPS systems that ensure continuous power availability in critical sectors like banking, finance, and healthcare . It rely on a strong network of dealers and distributors for the sale of our products to institutional and corporate clients efficiently. As of the nine-month period ended December 31, 2024 and Fiscals 2024, 2023 and 2022, our distribution network comprised of 360, 478, 539 and 469 dealers and distributors respectively, spread across the country

IPO Details:

Objectives of Issue:

• Funding working capital requirements of the Company
• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company
• Achieving inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes

Key Strengths:

• Experienced Promoters and Management Team: A significant strength highlighted is the experienced team leading the company. The Promoters, Ram Agarwal, Sonu Ram Agarwal, and Vikas Shyamsunder Agarwal, collectively possess over sixteen years of expertise in the power solutions sector. Their extensive experience and vision are considered pivotal to driving the company's growth.
• Diversified Product Portfolio and Manufacturing Capabilities: The company has developed a diversified product portfolio catering to various power solution needs. Initially involved in selling and installing third-party products, the company has progressively transitioned since 2021 into full-scale design, manufacturing, and assembly. Their manufacturing units now handle products like UPS systems, lift inverters, solar hybrid inverters, lithium-ion battery packs, servo-controlled voltage stabilizers, and isolation transformers. This evolution demonstrates enhanced operational control, growing technical capabilities, and the ability to offer a broader range of manufactured products
• Long-standing Customer Relationships and Quality Focus: The company benefits from long-standing relationships with its customers. While there is acknowledged reliance on a limited number of key customers, the company states it has fostered strong, long-term relationships. Complementing this is a focus on research and development, stringent quality control, and an effective after-sales service network. These factors are crucial for ensuring product reliability, customer satisfaction, and maintaining business relationships in the competitive power solutions industry

Risks

• Reliance on a Limited Number of Customers: A significant risk is the dependence on a limited number of customers for revenue The revenue from the top 10 customers constitutes a large portion of total revenue from operations (ranging from 39.60% to 71.80% across the reported periods). The potential loss of one or more of these key customers, or a significant reduction in orders for various reasons such as inability to renew contracts, disputes, or adverse financial changes, could have a material adverse effect on the company's business, financial condition, results of operations, and cash flows
• Geographical Concentration Risk: The company's manufacturing units are all located within the state of Maharashtra, India Specifically, these are in Pune and Navi Mumbai This exposes the company's operations to potential geographical concentration risks. Local or regional issues, such as regulatory changes specific to Maharashtra, natural calamities, or labor disturbances within the state, could adversely affect the manufacturing facilities and, consequently, the overall business, results of operations, and cash flows

Financial Snapshot:

KPI comparison with Industry Peers