Prostarm Info Systems shares nearly double from IPO price; Important development on Friday

Friday, December 5, will be an important session for Prostarm Info Systems, as its six-month shareholder lock-in period will come to an end. The end of this shareholder lock-in period would free up 3.1 crore shares or 53% of the company's outstanding equity, according to Nuvama Alternative & Quantitative Research. By Hormaz Fatakia Shares of Prosterm Info Systems Ltd., known for manufacturing and selling energy storage and power conditioning equipment, including various types of UPS systems, are trading with gains of nearly 15% on Tuesday, December 2. The stock has gained in five out of the last six trading sessions. During these last six trading sessions, the stock has gained over 30%. With this upmove, the stock, which made its Dalal Street debut in June this year, has nearly doubled from its issue price of ₹105 per share. Volumes on Tuesday are the highest on record for the company. As many as 4.1 crore shares have been traded on the stock as of 3 PM, compared to its 20-day average of 12.5 lakh. Shares worth ₹900 crore have already been traded on Prostarm so far, which is more than 3x its free float market capitalization of ₹268 crore, and nearly at par with its overall market capitalization of ₹1,155 crore. Friday, December 5, will be an important session for the stock, as its six-month shareholder lock-in period will come to an end. The end of this shareholder lock-in period would free up 3.1 crore shares or 53% of the company's outstanding equity, according to Nuvama Alternative & Quantitative Research. Based on the current market price, the total value of shares that will free up for trade on Friday is worth nearly ₹630 crore. It must be noted that the shareholder lock-in ending does not mean that all the shares will be sold in the open market, but will only become eligible to be traded. Shares of Prostarm Info Systems made an intraday high of ₹208.65 before cooling off from those levels. The stock currently trades 11.3% higher at ₹198. Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!