Prostram Info Systems, promoted by Ram Agarwal, Sonu Ram Agarwal and Vikas Shyamsunder Agarwal, is engaged in designing, manufacturing, assembling, sale, service and supply of Power Solution Products, i.e., Energy Storage Equipment and Power Conditioning Equipment. Power Solution Products manufactured by it comprise of uninterruptible power supply systems (UPS) system, inverter system, lift inverter system, solar hybrid inverter systems, lithium-ion battery packs, servo-controlled voltage stabilizers (SCVS), isolation transformers and other power solution products. In addition, it also undertakes rooftop solar photovoltaic power plant projects across India on EPC basis.

Established in 2008, it initially focused on the sale, supply, and installation of batteries and UPS systems sourced from third-party vendors. From 2021, it gradually transitioned into full-scale design, manufacturing, and assembly of products such as UPS systems, lift inverters, solar hybrid inverters, lithium-ion battery packs, servo-controlled voltage stabilizers, isolation transformers, and other power solutions. Now it offers both customized and standard products and solutions, manufactured and assembled at its in-house facilities and through third party contract manufacturers located in both India & China. It sells its products as ‘ProStram’. In addition to its core manufactured products, it also deals in sales and supply of third-party power solution products such as batteries, reverse logistics/end-of-life products and other assets such as IT Assets, solar panel and allied products.

Sales of UPS system contributed 17.40% and 38.99% of revenue from operations in 9mFY25 and FY24 respectively. Revenue from Solar EPC contracts accounted for 6.21% and 9.18% in 9mFY25 and FY24, respectively.

Its comprehensive range of value-added services include installation, rental, after-sales services (including warranty and post-warranty services), annual maintenance contracts (AMC) which supplements its Power Solution Products, catering to a wide spectrum of customers and their requirements.

It caters to diverse end-use industries such as healthcare, aviation, research, BFSI, railways, defense, security, education, renewable energy, information technology and oil & gas.

In addition to offering its products directly to government, institutional and corporate customers, it also relies on a strong network of dealers and distributors numbering about 478 across the country for sale of its products to institutional and corporate clients efficiently. The companyservices customers through different channels GeM/Tenders, distributors and OEMs. In FY24 and 9mFY25 GeM/tenders accounted for 64.45% and 74.32% of revenue respectively with dealer/distributor sales accounting for 31.81% and 23.68%, OEM 3.74% and 2%.

The company as on date is empanelled vendor for Airports Authority of India; West Bengal Public Health Engineering Department; West Bengal Electronic Industry Development Corporation; Telangana State Technology Services; Railtel Corporation of India; and NTPC Vidyut Vyapar and Nigam.

It offers end-to-end solutions for rooftop solar installations, covering all aspects of solar-PV powerproject development, including site assessment, system design, procurement of high-quality materials, and complete installation services. Additionally, itprovides operations and maintenance(O&M) services to its clients to ensure optimal performance, reliability, and longevity of the solar power systems. Itexecuted and commissioned rooftop Solar PV Power Plants totaling 10.56 MW at over two hundred sites during the nine-month period ended December 31, 2024, and in the last three fiscals. Most solar EPC contracts are through tender and bidding process.

Prostarm Energy Systems, a subsidiary of the company in CY 2021 entered an arrangement to acquire technology knowhow from Aarcchor Innovations, a company engaged in development and manufacturing of UPS, solar inverter, inverters and RDSO approved products. Further, in CY 2022, it acquired technical knowhow, assets and absorbed employees of Transfield Transformers and Electronics, a company engaged in manufacturing transformers. It also entered a technology license agreement to have the right-to-use of Battery Management System (BMS) technology, from Automotive Research Association of India (ARAI), for a period of five years, starting from August 5, 2021, which is proposed to be used in the assembly of lithium-ion battery packs.

As on the date it has three manufacturing units located in the state of Maharashtra. While Unit I at Pisoli (Pune) and Unit III at Mahape (Navi Mumbai) are operated by the company. The Unit II at Pisoli (Pune) isbeing operated under its subsidiary, Prostarm Energy Systems Private Limited.

The Issue, Object of the Issue

The Initial Public Offer comprises fresh issue of up to 16000000equity shares of Rs 10 each.

Of the net proceeds from the fresh issue of equity shares, about Rs 72.50 crore will be used to meet working capital requirement, Rs 17.96 crore for repayment/prepayment in full or in part of certain outstanding borrowings and balance for general corporate purposes.

Total outstanding as onMarch 31, 2025, stood at Rs 66.92 crore.

Strengths

Diverse and continuously evolving product portfolio/verticals enable it to offer its customers multiple products to meet their power storage and power conditioning requirements.

Over 15 years of operations in dealing with Power Solution Products, it builds strong relationship/trust with about 40% of the 700 customers it caters to in FY24 are associated with the company for more than 3 years.

Weaknesses

Derive significant portion of revenue from government institutions i.e. 30.22%/46.21% in FY24 and 9mFY25, respectively.

The top 5/10 customers accounted for 38.43%/51.88% in FY24 and 59.97%/71.80% in 9MFY25.

Received a show cause notice for alleged violation under the Custom Act, 1962. Any adverse order passed against it would materially affect the financial condition and business.

Experienced negative operating cash flows in 9mFY25, FY24 and FY23.

Intense competition from cheap/low quality UPS produces especially from local/regional players due to lack of standards despite high technological complexity.

Ability to manufacture lithium battery packs may be adversely affected due to various reasons including restriction on import of lithium-ion cells, change in regulatory landscape, tariff increase etc.

Ram Agarwal, a director of the company,was disqualified to act as Director in any company due to his directorship in a Company, namely, S. K. Stampings Private Limited, which had not filed its financial statements/annual returns with the Registrar of Companies, Pune (Maharashtra). The disqualification ceased to exist on October 31, 2021. Similarly, the name of Tapan Ghose, Managing Director is in the list of defaulters issued by Ministry of Corporate Affairs in the past and it is not currently.

Exchange rate fluctuations may adversely affect the business given significant imports.

Valuation

Consolidated re-stated revenue for the fiscal ending March 2024 stood higher by 12% to Rs 257.87 crore. With OPM expanding by 190 bps to 13.7%, the growth ofoperating profit was30% to Rs 35.26 crore. Finally, the net profit after MI was up by 17% to Rs 23.31 crore.

For the 9mFY25, the net profit after MI was Rs 22.93 crore on sales of Rs 268.63 crore.

The EPS for FY2024 on expanded equity was Rs 4. The PE on the upper price band works out to 26.3 times and P/BV stood at 2.2 times.

In comparison, Sungarner Energy, Swelect Energy, Servotech Renewable (formerly Powertech Power Systems) quotes at a PE of 67.6, 30.2 and 246.6 times of their FY24 EPS and P/BV of 6.9, 1 and 11.8 times.