The (Initial public offering) of Indian Energy Exchange which opened on 9 October for subscription was subscribed 2.31 times on the last day of bidding. The public offer of IEX got an immense response from QIBs (qualified institutional buyers) and retail investors as both the categories were also oversubscribed at the close of IPO. The company has set a price range of Rs 1,645-1,650 per equity share of face value Rs 10. Indian Energy Exchange is expected to garner Rs 1,000.73 crore from its public offer at the upper end of the price band by selling 60.65 lakh equity shares (including anchor investors).
The portion set aside for the QIBs was subscribed 2.56 times, the bids received for the shares reserved for the NII category stood at 84.67% while the quantum allocated for retail investors got subscribed 2.44 times. The issue where the company is selling 20% of the paid-up capital, has set the floor price of the shares is 164.5 times the face value and the cap price is 165 times of the face value. Investors can bid for a minimum of 9 equity shares and in multiples of it thereafter.
“The IPO committee of the Board of Directors of the company at its meeting held on October 10, 2017, in consultation with the book running lead managers to the offer has finalised revised allocation of 7,89,120 shares to anchor investors at a price of Rs 1,650 per shares,” company said in an exchange filing today. Earlier, the company had allocated 18,19,501 equity shares to anchor investors at a price of Rs 1,650 per share.
Through the IPO, the company had sold about 52,75,889 equity shares by existing shareholders which include 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 MD and CEO SN Goel.
Besides, through this exercise, we are bringing in more transparency and efficiency in our operations, he said. “This IPO will also provide a public market for the equity shares in the country,” Goel added. Indian Energy Exchange got established in 2008, is India’s first power exchange providing an automated trading platform for electricity (for physical delivery) and REC (renewable energy certificates). Axis Capital, Kotak Mahindra Capital Company and IIFL Holdings are the book running lead managers for the public issue.