Newly-listed power solutions provider surges extends gains from issue price to nearly 80%

Shares of Prostarm Info Systems Ltd. extended their gains for the third consecutive day on Thursday, November 27, rising nearly 18%.

This is the biggest single-day gain and volumes the stock has witnessed since July. As many as 1.5 crore shares of Prostarm Info Systems changed hands during the trading session, compared to its 20-day average of 2.8 lakh shares.

This is also the third-best day of listing for the stock since its listing in June this year.

The stock has risen 76% from its IPO price of ₹105 apiece.

The stock had listed at a premium of 19% to its issue price of ₹105 per share in June this year.

The Maharashtra-based firm made an initial public offering of ₹168 crore. The firm sold its shares in price band of ₹95 to ₹105 per share to raise funds via an entirely fresh issue of 1.6 crore equity shares.

Around ₹72.5 crore of the issue proceeds were for its working capital requirements and ₹18 crore for repaying debt. Also, ₹9 crore would be used for the acquisition of further stake of its subsidiary to make it a wholly-owned subsidiary and the remaining funds were for inorganic growth and general corporate purposes.

Prostarm Info Systems specialises in designing, manufacturing, and selling Energy Storage and Power Conditioning Equipment, known as "Power Solution Products."

The company manufactures various Power Solution Products, including UPS systems, inverter systems, solar hybrid inverter systems, lithium-ion battery packs, and voltage stabilisers

Shares of Prostarm Info Systems gained 19% to hit an intraday high of ₹190 apiece on Thursday. The stock was up 18% at 188.34 apiece around 2.45 pm.

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