Indian Energy Exchange Ltd IPO – Company Profile, IPO Date, Price Band, Analysis


Indian Energy Exchange Limited – the largest exchange for the trading of a range of electricity products in India, is planning to raise INR 1000.72 crore (6,065,009 shares of OFS) via initial public offer (IPO)

Indian Energy Exchange Limited – Company Profile

  • Incorporated in the year 2007, Indian Energy Exchange Limited (IEX) is a Power Exchange offering trading in a range of electricity products in India.
  • It is the largest exchange for the trading of a range of electricity products in India, in terms of traded contract volumes in the financial year 2017 according to the Central Electricity Regulatory Commission (CERC)

Working Area

  • Indian Energy Exchange (IEX) is India’s premier power trading platform. Providing an automated platform for physical delivery of electricity, IEX enables efficient price discovery and offers participants the opportunity to trade in a variety of energy products. The company’s exchange platform increases the accessibility and transparency of the power market in India and enhances the speed and efficiency of trade execution.
  • Today, more than 5800 participants are registered on our exchange and are located across utilities from 29 States, 5 Union Territories (UTs). 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.
  • Out participants registered to trade electricity contacts include 50 distribution companies, over 400 electricity generators and over 3,800 open access consumers. As of March 2017, in addition to participants who traded electricity contracts, participants registered to trade RECs included over 1,000 renewable energy generators and over 2,900 industry and corporate customers.
  • The benefiting open access consumers belong to various industries such as metal, food processing, textile, cement, ceramic, chemicals, automobiles, information technology industries, institutional, housing and real estate and commercial entities.

Product Segments

  • Day Ahead Market (DAM) – Launched in June 2008, in this segment, participants transact electricity on a 15-minutes block basis, a day prior to the delivery of electricity. The DAM constitutes the majority of the energy contracts that are traded on IEX. IEX has a market share of 99.6% in DMA trading.
  • Term Ahead Market (TAM) – Launched in September 2009, contracts under TAM cover a range for buying/selling electricity for a duration up to 11 days.
  • Renewable Energy Certificates (REC) – Launched in February 2011, Renewable Energy Certificate market facilitates a transaction in environmental attributes.
  • Energy Saving Certificates (ESCerts) – ESCerts will be the tradable certificates under the Perform, Achieve, Trade (PAT) Scheme of Bureau of Energy Efficiency (BEE), a market-based mechanism to incentivize energy efficiency in large energy-intensive industries.

ISO Certifications

In August 2016, IEX received three ISO Certifications –

  • ISO 9001:2008 for quality management,
  • ISO 27001:2013 for Information security management, and
  • ISO 14001:2004 for environment management

Company Promoters

  • Indian Energy Exchange Ltd is a professionally managed company and does not have an identifiable promoter in terms of SEBI ICDR Regulations and the Companies Act, 2013.
  • The 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.

IPO Opening / Closing Dates & Listing

Indian Energy Exchange

IPO Details – Issue Price, Minimum Bid and Other

Indian Energy Exchange

Financial Performance

Indian Energy Exchange

Revenues

The Company shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 138.40 crore in FY 2013 to INR 237.40 crore for the period ended FY 2017.

Profits

Though the company has shown superb growth in revenue, the company has also registered impressive profits in these 5 years. Starting from INR 66.30 crore of profits in FY2013, the company’s earnings improved to INR 113.60 crore for the period ended FY 2017.

CONCLUSION –
Considering company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on Indian Energy Exchange Limited IPO

 

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Vishal Dalwadi

Vishal Dalwadi

Vishal is an MBA (Finance) post-graduate. He is the founder and owner of "FinBlab". His blog aims at providing information and research on Stock market and sectors including Mutual funds, IPOs, Insurance and more.

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