Market Performance
- Date: July 9, 2025
- Stock Movement: Prostarm Info Systems' share price climbed 11% during intraday trade.
- 1-Month Rally: The stock has gained a remarkable 62% since its initial public offering on June 3, 2025.
This surge comes as the company announces a significant expansion into the Battery Energy Storage System (BESS) sector, which is seen as a key growth driver.
Main News: BESS Facility in Haryana Announced
On July 8, Prostarm Info Systems informed the stock exchanges of its plan to establish its first-ever BESS manufacturing unit.
Key Highlights:
- Location: Reliance MET, Jhajhar, Haryana
- Land Area: 3,912 sq. meters
- Covered Shed Area: 34,000 sq. ft
- Annual Capacity: 1.2 GWh
- Lease Term: 9 years
The company will invest a capital expenditure of ₹25 Crore for this project.
Company Expansion Details
Planned Investment Breakdown:
- Advanced plant and machinery
- Office infrastructure
- HVAC systems
- Power capacity upgrades
- Anti-static flooring
- Warehousing
- Other essential manufacturing infrastructure
This strategic move marks the company's entry into the fast-expanding BESS segment, aligning with India's focus on renewable energy solutions.
Company Orders & Business Growth
Prostarm has already bagged major contracts within the BESS segment:
- Adani Electricity Mumbai Limited:
- Order Size: 22 MWh
- Contract Value: ₹52 Crore
- Scope: Design, supply, installation, commissioning, and testing
- Bihar State Power Generation Company Ltd:
- Letter of Intent (LOI) Received
- Order Size: 120 MWh (BOOT model)
- Rental Agreement: ₹4.44 lakh per MW/month for 12 years
These deals are expected to strengthen Prostarm's foothold in the power storage market.
Company Background
Prostarm Info Systems is a Maharashtra-based manufacturer of power solution products. The company focuses on energy-efficient solutions and aims to evolve as one of India's few OEMs in BESS manufacturing.
IPO Performance
- IPO Date: May 27 – May 29, 2025
- Issue Price: ₹105 per share
- Listing Date: June 3, 2025
- Listing Price: ₹125 per share (Premium of 19%)
- IPO Size: ₹168 Crore
- Subscription: Over 97 times
- Total Bids Received: Nearly 109 Crore shares
- Shares Offered: 1.12 Crore shares
The IPO comprised a fresh issue of 1.6 Crore equity shares, offered at a price band of ₹95 to ₹105 per share.
Utilization of IPO Proceeds
The company outlined the following purposes for the IPO fund usage:
- Working capital requirements
- Repayment of existing debt
- Inorganic growth via unidentified acquisitions
Summary of the Article
Prostarm Info Systems' share price witnessed a substantial 11% jump on July 9, following its announcement to enter the Battery Energy Storage System space. The company has unveiled a ₹25 Crore investment plan to set up a 1.2 GWh BESS facility in Haryana.
This strategic expansion has sparked strong investor interest, driving the stock up by 62% within just a month of its market debut. With major contracts in hand and increasing focus on energy storage, Prostarm is positioning itself as a key player in India's clean energy drive.
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