Indian Energy Exchange Ltd is a ‘power exchange’ offering trading in a range of electrical products in India. This is India’s largest exchange in the electricity products trading category. Indian Energy Exchange is an online trading platform which is accessible to registered participants. Indian Energy Exchange is coming up with their first initial public offering this month. We will check the Indian Energy Exchange Ltd IPO review in this post and will also know more about the date, price, GMP and draft prospectus.
About Indian Energy Exchange Ltd IPO :
- IPO opens on – October 9, 2017
- IPO closes on – October 11, 2017
- Face value – Rs. 10 per equity share
- Issue price – Rs. 1645-Rs. 1650 Per Equity Share.
- Issue type – Book Built Issue IPO .
- Minimum lot – 9 shares.
- Minimum order quantity – 9 Shares.
- Issue size – 6,065,009 Equity Shares of Rs 10 aggregating up to Rs 1,000.73 Cr & Offer for Sale of 6,065,009 Equity Shares of Rs 10 aggregating up to Rs [.] Cr .
- Listing exchange – BSE, NSE.
- Draft Prospectus – Download Indian Energy Exchange Ltd DRHP.
Objectives of the issue :
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
- To carry out the sale of up to 6,065,009 Equity Shares by the Selling Shareholders.
About The Company-
- Indian Energy Exchange Ltd is incorporated in 2007.
- IEX Exchange is an online trading platform which is accessible to registered participants.
- Indian Energy Exchange Ltd promotes efficient price discovery and the opportunity to trade in a variety of electricity products.
- In addition to trade execution, This company also offers settlement services, including electronic trade confirmation, access to clearing services and risk management functionality.
- DAM (Day-ahead-market) – The DAM constitutes the majority of the energy contracts that are traded on Indian Energy Exchange Ltd. Electricity contracts in blocks of 15 minutes.
- TAM (Term-ahead-market) – Fixed terms electricity contracts for in the future, such as intra-day contracts, day ahead contingency contracts and contracts up to 11 days.
- RECs (Renewable energy certificates) – IEX is amoung 2 exchanges in India that offer an electronic platform for the trading of electricity products.
- Strengths1. IEX Exchange is an online platform. Highly scalable and proven technology infrastructure.
2. IEX is first and largest energy exchange in India with strong brand recognition.
3. India is fast growing domestic market.
4. IEX has diverse participant base ensuring liquidity on its exchange.
Promoters of the company :
- This is a professionally managed company and does not have an identifiable promoter in terms of SEBI ICDR Regulations.
- Company was initially promoted by Financial Technologies (India) Limited and PTC India Financial Services Limited (PFS). They currently hold no Equity Shares in the company.
Indian Energy Exchange Ltd IPO Review:
The financial data shows that the company has managed a maintain a steady profit over the years and the profitability has increased year on year. The grey market premium is not yet available but the Kostak rates are hovering around Rs. 300 – Rs. 350. We do not feel immediate very high listing gain may not be possible but long-term investors will be benefitted. Hence, our Indian Energy Exchange Ltd IPO review has a NEUTRAL rating on this issue. Investors must wait till last date and apply our IPO selection method before applying.