Prostarm Info Systems share price made a decent debut in the Indian stock market today, June 3, as the scrip listed with a decent premium over its initial public offering (IPO) price.
On BSE, Prostarm Info Systems share price began trading at ₹125 per share, a 19.05% premium to the issue price of ₹105. Meanwhile, on NSE, Prostarm Info Systems share price debuted at a 14.29% premium at ₹120 apiece.
The IPO of power solution products maker Prostarm Info Systems was launched on May 2, with the Prostarm Info Systems IPO listing date fixed as June 3.
Prostarm Info Systems IPO listing was better than the Street estimates, as the Prostarm Info Systems IPO GMP or grey market premium ahead of debut was around 11%.
Following a healthy listing, analysts remain bullish on Prostarm Info Systems stock in the long run.
Prostarm Info Systems Shares: Should you buy, sell or hold after listing?
According to Arun Kejriwal, founder of Kejriwal Research and Investment Services, Prostarm Info Systems has delivered a stronger performance than what was indicated by the grey market ahead of its listing.
“Prostarm Info Systems’ IPO objectives are not short-term in nature, but focus on medium- to long-term growth. Accordingly, the benefits from this issue will also unfold over the medium-to-long term,” said Kejriwal.
He noted that as the company begins to declare its financial results, investors will have the opportunity to evaluate its performance and potentially reinvest.
“At this point, there is no need for investors to buy the stock at a 20% premium to the issue price. It would be wiser to wait for better opportunities,” he added.
For those who have already bought the shares, Kejriwal suggested booking profits and waiting for the stock to consolidate. “This IPO witnessed strong subscription, and part of the listing gains can be attributed to the euphoria generated during the subscription phase,” he said.
Commenting on the prospects of Prostarm Info Systems, Avinash Gorakshakar, Head of Research at Profitmart Securities, said the company is well-placed for long-term success.
“Prostarm is a promising player in the power solutions space, catering to several key sectors including defence, aerospace, power, railways, and BFSI. The company has a strong promoter profile with the right skill set to scale up operations effectively. Overall, it is well-positioned to perform strongly over the long term,” he said.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
