India's leading power trading platform Indian Energy Exchange (IEX) will issue its IPO (Initial Public Offer) today. The Rs 1,000 crore initial public offer of Indian Energy Exchange will give the company a valuation of nearly Rs 5,000 crore. Axis Capital, Kotak Investment Banking, IIFL, and Karvy are the book running lead managers to the IPO.
Here are all the details about the IPO:
The issue will be open for subscription on Monday (October 9) and will continue till October 11 (Wednesday). The equity shares are proposed to get listed on both the stock exchanges in India, the BSE and NSE. Also, the power trading company aims to raise almost Rs 1,000 crore through it's IPO.
The price band for each share of IEX has been fixed at Rs 1,645 to Rs 1,650 apiece for a share. The power exchange on Saturday raised about Rs 300.22 crore by allotting 18,19,501 shares to 23 anchor investors at a price of Rs 1,650 per share. The list included ICICI Prudential MF Birla Sunlife MF, Birla Sunlife Trustee Company and SBI Mutal Fund (MF).
Indian Energy Exchange IPO offers four different products renewable energy certificates (REC), day-ahead market (DAM), term ahead market (TAM), Energy savings certificates (ESCerts). 50 per cent of the total offer of the IPO is reserved for qualified institutional buyers (QIBs). The issue involves the sale of shares by 11 shareholders who are offering a total of nearly 60.7 lakh shares. Bids can be made for a minimum of 9 equity shares and in multiples of 9 equity shares thereafter.
IEX is the largest exchange for trading electricity, and the firm enjoys 99 per cent market share. The company had reported a net profit of Rs. 114 crore on revenues of Rs. 204 crore in the Financial year 2017. The revenue and net profits of IEX have witnessed steady growth except in the financial year 2015. The company has a return on equity (RoE) of 30.8 per cent compared to 7.4 per cent for Multi Commodity Exchange (MCX).