Weak debut: Indian Energy Exchange lists at 9% less than issue price

IPO was subscribed by 2.28 times with bidding for 1.20 cr shares.

By: ENS Economic Bureau | Mumbai | Published: October 24, 2017 1:01:04 am
Sebi, Stock market, Stock market fraud, TRAI, RBI The company had to revoke the allotment made to FPIs in the anchor category after the custodians told the bankers to the issue that FPIs shall not be eligible to participate in the offer.

Indian Energy Exchange (IEX) made a weak debut on the bourses on Monday. The stock got listed on the BSE at Rs1,500, 9 per cent discount to its issue price of Rs 1,650. The stock ended the session at Rs 1,626, 1.45per cent below its issue price.

The initial public offering of Indian Energy Exchange (IEX) was subscribed by 2.28 times, with investors bidding for 1.20 crore shares of the 42.45 lakh shares reserved for them.

The company had to revoke the allotment made to foreign portfolio investors (FPIs) in the anchor category after the custodians told the bankers to the issue that FPIs shall not be eligible to participate in the Offer. The shares allotted to FPIs were offered to institutional investors who bid in the QIB category.

IEX, the largest exchange for the trading of electricity products in the country, planned to raise Rs1,000 crore from its initial public offering (IPO). The company had set a price band of Rs 1,645-1,650 per share for its IPO and when calculated at the upper band of the issue price the company will be valued at Rs 5,000 crore. The issue comprised of 20 per cent of the post-offer paid-up equity capital.

IEX is one of the two exchanges in India that offer to the trade of electricity products. The products traded in its platform include electricity contracts in the blocks of 15 minutes in the day ahead market, electricity contracts for the fixed terms in future, and renewable energy certificates.

With the fall in tariffs in the renewable segment and discoms not signing power purchase agreements, the volumes on Indian Energy Exchange has grown substantially over the last couple of years. Since the beginning of 2017, 28 companies have together raised an amount of Rs44,342 crore.

Listing gains and returns by newly-listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend.

BSE, GIC Re, HUDCO, ICICI Lombard, SBI Life, AU Small Finance Bank, CDSL Avenue Supermarts, Shankara Building Products and S Chand and Company are some of the companies who completed their IPO in the nine months. FE

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