Prostarm Info Systems shares jump 11%, stock rallies 62% in a month since market debut

The shares of Prostarm Info Systems rallied over 11 percent on July 9 after the company announced its plans to establish its first Battery Energy Storage System (BESS) manufacturing facility in Haryana. The stock has now surged over 62 percent nearly a month from its market debut.

In an exchange filing released on July 8, the company announced that it plans to establish its maiden Battery Energy Storage System (BESS) manufacturing facility at Reliance MET in Haryana's Jhajhar. For the proposed 1.2GWh expansion, Prostarm said that it has secured a 9-year lease for a land parcel spanning across 3,912 sq. meters, including a covered shed area of 34,000 sq. ft.

The company has planned a total capital expenditure of Rs 25 crore for the project. This will include the setting up of advanced plant & machinery, office infrastructure, HVAC systems, power capacity upgrades, anti-static flooring, warehousing and other essential infrastructure. The plant will have an annual manufacturing capacity of 1.2 GWh.

Speaking about the development, Prostarm Info Systems CEO Ram Agarwal said, "This strategic expansion marks our entry into the fast-growing BESS segment, which is a natural extension of our core expertise in power electronics. With this facility, the company aims to become one of India’s few OEMs manufacturing BESS solutions, allowing us to directly supply to EPC contractors and developers, thereby opening up significant new revenue opportunities. We believe this strategic expansion positions Prostarm at the forefront of India’s energy transformation."

"In BESS, the Company already secured 22 MWh order from Adani Electricity Mumbai Limited for design, supply, installation, commissioning and testing having contract value of Rs. 52 crore approx. and another LOI from Bihar State Power Generation Company Limited for 120 MWh on BOOT model with monthly rental of Rs. 4.44 lacs/MW for period of 12 years," he added.

Prostarm Info Systems had made a decent market debut on June 3, listing at a premium of over 19 percent over its issue price at Rs 125 apiece, beating grey market estimates. The Rs 168-crore IPO of Prostarm Info Systems was subscribed over 97 times from May 27 to May 29. The public issue of the Maharashtra-based power solution products-maker received bids for nearly 109 crore shares, as against the offer size of 1.12 crore shares, according to NSE data.

The inverter-maker's IPO entirely comprised a fresh issue of 1.6 crore equity shares at a price band of Rs 95-105 per share. Investors could apply for a minimum of 142 shares, with a minimum investment of Rs 14,910, and in multiples thereafter.

The company intends to utilise IPO proceeds for working capital requirements, repayment of debt, and inorganic growth through unidentified acquisitions.

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