IEX to list on stock exchanges on Monday

NEW DELHI: Shares of Indian Energy Exchange ( IEX) will list on BSE on Monday. The issue, which was sold between October 9 and October 11, had been subscribed 2.28 times.

The company, which sold shares in the Rs 1,645 - Rs 1,650 range, had cut the anchor investor allocation to 7,89,120 shares from 18,19,501 announced earlier. Lack of clarity on whether foreigners are allowed to invest in the IPO of a power bourse was cited as the main reason, four people familiar with the matter told ET.

At an issue price of Rs 1,650, the stock is valued at 43.5 times FY17 EPS.

Experts noted that IEX enjoys a dominant position in the electronic platform for short-term power market. They expect the exchange to deliver higher revenue and profit, given the strong growth potential. Government initiatives like rural electrification, Power for All and UDAY are likely to drive short-term power market volumes, they said, which could result in an expected share of 21.1 per cent by FY22.

The company has generated a return on equity (ROE) of 30.8 per cent against Multi-commodity Exchange's 7.4 per cent, based on FY18 annualised earnings.

Energy trading is at a nascent stage in India with only 3 per cent market volume traded through the exchange compared with 30‐35 per cent in developed countries.