Prostarm Shares Rise 3% After ₹192 Crore BESS Deal with Bihar Power Generation Firm
By Ankur Chandra | Published at: Jun 17, 2025 01:14 PM IST
Mumbai, June 17, 2025: Shares of Prostarm Info Systems Ltd (NSE: PROSTARM) advanced 3.01% to ₹115.71 in early Tuesday trade, fuelled by news that the firm secured a major government project. The company has received a Letter of Intent (LOI) from Bihar State Power Generation Company Ltd (BSPGCL) for deploying a Battery Energy Storage System (BESS) across key sites in the state.
As of 10:44 AM IST on June 17, shares of Prostarm Info Systems Ltd were trading at ₹116.29, marking a rise of ₹3.96 or 3.53% for the day. The stock opened at ₹117.00 and touched an intraday high of ₹118.90 and a low of ₹114.10. The company’s market capitalisation stood at ₹683.59 crore. Currently, the stock has no reported price-to-earnings (P/E) ratio or dividend yield. Its 52-week range spans from a low of ₹108.00 to a high of ₹126.00, with no declared quarterly dividend amount.
Project Overview
In a regulatory filing under Regulation 30 of SEBI Listing Obligations, Prostarm disclosed the following details about the awarded project:
| Particulars | Details |
|---|---|
| Project Scope | 30MW / 120MWh Standalone BESS setup |
| Location | Multiple GSS locations of BSPTCL in Bihar |
| Contract Value | ₹15.98 crore per annum (₹192 crore over 12 years) |
| Rental Rate | ₹4.44 lakh per MW per month |
| Model | BOOT (Build, Own, Operate, Transfer) |
| Execution Period | 18 months from the effective date of BESPA |
| Tender Mode | Tariff-Based Competitive Bidding (TBCB) |
| Funding Support | Viability Gap Funding (VGF) |
| Promoter Interest | No related party interest involved |
Market Activity Snapshot (as of 09:57 IST)
| Metric | Value |
|---|---|
| Last Traded Price | ₹115.71 (+3.01%) |
| Day’s High / Low | ₹118.90 / ₹114.10 |
| Volume | 2.46 lakh shares |
| VWAP | ₹116.28 |
| Market Capitalization | ₹681.24 crore |
| 52-Week High/Low | ₹126 / ₹108 (in June) |
A significant buy-sell imbalance was also noted, with Buy Quantity at 53,942 shares versus Sell Quantity of 2,38,199 shares, indicating robust early demand sentiment.
Business Impact & Strategic Significance
Entry into Utility-Scale Energy Storage
The BESS project marks Prostarm’s official foray into the utility-scale energy storage domain—a rapidly evolving segment critical to India’s clean energy roadmap. As the nation expands its renewable energy base, battery storage solutions are becoming essential for ensuring grid stability and managing peak load demands. This project allows Prostarm to position itself early in a sector that is expected to see exponential growth over the coming years.
Long-Term Revenue Assurance
The 12-year annuity-style contract structure offers Prostarm consistent and predictable income through monthly rental payments. Under the BOOT (Build, Own, Operate, Transfer) model, the company retains operational control and asset ownership throughout the project duration. This long-term cash flow enhances financial planning, supports earnings stability, and improves the company’s investment profile.
Improved Project Feasibility through VGF
The inclusion of Viability Gap Funding (VGF) is a key factor that boosts the financial viability of the project. VGF helps close the gap between project cost and expected returns by offering partial capital support from the government. This reduces initial capital stress, enhances bankability, and enables easier access to external funding. For Prostarm, this lowers project risk and strengthens the overall return on investment.
Alignment with National Energy Policies
The project aligns closely with India’s ambitious targets for battery storage deployment and renewable energy integration. Government initiatives such as incentives for energy storage, tariff-based competitive bidding, and transmission charge waivers are designed to support such developments. By participating in this state-backed initiative, Prostarm directly benefits from the ongoing policy momentum aimed at accelerating the energy transition.
Company Background
Prostarm Info Systems Ltd, which got listed on both NSE and BSE in June 2025, operates under the “Other Electrical Equipment” classification. The firm specialises in power conditioning and energy solutions, and is now expanding into storage and renewable technologies. It is also included in the NIFTY IPO Index.
Given the broader investor enthusiasm around clean energy initiatives and grid resilience, Prostarm is expected to remain under close watch by the markets.
REF: https://nsearchives.nseindia.com/corporate/PROSTARM_16062025185204_SE_LOI.pdf
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