Indian Energy Exchange Rs 1,001 crore IPO (initial public offer) is all set to open on Monday for the subscription. We take a look at six key things to know about the 1,001-crore public offer.
Indian Energy Exchange Rs 1,001 crore IPO (initial public offer) is all set to open on Monday for the subscription. IEX has recently collected about Rs 300 crore from the anchor investors ahead of its IPO opening today by allotting 18 lakh shares (approx) at the upper end of the price band. 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. The issue where the company is selling 20% of the paid-up capital, will remain open for three days, from 9 October to 11 October. We take a look at six key things to know about the 1,001-crore public offer.
Indian Energy Exchange has garnered slightly over Rs 300 crore from anchor investors. The company has finalised to allocate 18,19,501 equity shares to 23 anchor investors at a price of Rs 1,650 per share, Indian Energy Exchange (IEX) said in a BSE filing. At the upper end of the price band, the total amount comes out to be Rs 300.22 crore. SBI Mutal Fund (MF), Birla Sunlife MF, JPMorgan India Smaller Companies Fund, SmallCap World Fund, Birla Sunlife Trustee Company, ICICI Prudential MF and Nomura are among the anchor investors.
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 an f 9 equity shares and in multiples of it thereafter. Axis Capital, Kotak Mahindra Capital Company and IIFL Holdings are 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 shares are proposed to be listed on BSE and NSE.
“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. 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). 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.
Multi Commodity Exchange (MCX) was India’s first exchange to be listed on the bourses, it went public in 2012. Bombay Stock Exchange got listed earlier this year in February while its rival National Stock Exchange has already approached SEBI with IPO papers in December 2016 and may come up with the public offer somewhere around next year.