Prostarm Info Systems Limited has informed the Exchange -Update on litigation Intimation regarding Order-in-Original received from Commissioner of Customs, Nhava Seva, Raigad, Maharashtra for drop of proceedings against the Show Cause Notice amounting to INR 25.66 Crores

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On the reaction day the stock moved 2.6 pts less than Nifty Microcap 250 and 2.3 pts less than its Other Electrical Equipment peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

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AI summary

Prostarm Info Systems has received an Order-in-Original from the Commissioner of Customs, Nhava Seva, Raigad, confirming no liability of INR 25.66 Crores and dropping all proceedings related to a Show Cause Notice dated May 21, 2024. The original notice alleged that the company had wrongly availed exemption of basic customs duty on UPS imports. The company had disclosed this dispute in its IPO documents (DRHP, RHP, Prospectus) and has now received a fully favorable order, with no settlement payment or penalty involved. The order was received on August 4, 2025.

Likely market impact

This is a significant positive development for shareholders as a potential INR 25.66 Crore liability has been completely removed, strengthening the company's financial position and removing a key risk factor that was flagged during its IPO.