1. IEX share price falls on listing; stock trading at 2% discount to IPO price on exchange debut

IEX share price falls on listing; stock trading at 2% discount to IPO price on exchange debut

The shares of Indian Energy Exchange made a disappointing debut on the stock exchanges on Monday. The stock of IEX listed down 5% at Rs 1,500 from its issue price of Rs 1,650 per share.

By: | Published: October 23, 2017 10:16 AM
The shares of Indian Energy Exchange made a disappointing debut on the stock exchanges on Monday (Image: Reuters)

The shares of Indian Energy Exchange made a disappointing debut on the stock exchanges on Monday. The stock of IEX listed down 5% at Rs 1,500 from its issue price of Rs 1,650 per share, but paired the losses to 2% at Rs 1,615. The IEX issue was sold between October 9 and October 11 and was subscribed 2.28 times.

The company sold 20% of the paid-up capital and sold shares in the Rs 1,645 – Rs 1,650 range. It had also cut the anchor investor allocation to 7,89,120 shares from 18,19,501 announced earlier. Axis Capital, Kotak Mahindra Capital Company and IIFL Holdings were the book running lead managers for the public issue.

The IPO will see a sale of 60,65,009 equity shares by existing shareholders which included Tata Power Company, private equity arm of Aditya Birla Group, Madison India Capital and Multiples Alternate Asset Management. “The main aim behind this IPO is not to raise capital but to provide an exit option. The listing will enhance the company’s brand and provide liquidity to the existing shareholders,” PTI reported citing IEX managing Director and CEO SN Goel.

Indian Energy Exchange got established in 2008, was India’s first power exchange providing an automated trading platform for electricity (for physical delivery) and REC (renewable energy certificates). Today, more than 5800 participants are registered on the exchange and are located across utilities from 29 States, 5 Union Territories (UTs), as per company’s website. Over 4,200 registered participants were eligible to trade electricity contracts and over 3,900 registered participants were eligible to trade RECs, as of March 2017.

Indian Energy Exchange reported a rise of 13.18% in the net profit to Rs 113.65 crore for the financial year 2016-17 as compared to Rs 100.34 crore in the previous fiscal. The total revenues grew 18.63% to Rs 237.42 crore versus last year’s Rs 200.14 crore.

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