IEX shares close 1.43% lower on stock market debut
Mumbai: Shares of Indian Energy Exchange Ltd’s (IEX) debuted 9.09% lower on the bourses on Monday, even after the country’s largest energy exchange saw its Rs1,000-crore initial public offer (IPO) subscribe 2.28 times earlier this month.
The shares opened 9.09% lower on the BSE at Rs1,500 a piece, compared to the issue price of Rs1,650, which was the upper end of the price band of Rs1,645-1,650 per share.
IEX shares closed 1.43% lower to Rs1,626.45, while benchmark 30-share Sensex ended 0.36%, or 116.76 points, higher to 32,506.72. Earlier in the day, the shares touched a high of Rs1,658 and a low of Rs1,500 respectively.
On 11 October, Mint had reported that private equity investors Aditya Birla Private Equity and Renuka Ramnath-led Multiples Alternate Asset Management (Multiples PE) sold IEX shares worth Rs103 crore in private transactions, just a couple of days ahead of the launch of the IPO.
At the upper end of this price band, the initial share sale values the firm at Rs5,000 crore.
IEX and Power Exchange India Ltd are the two power exchanges facilitating short-term power trading. IEX dominates the market with its share in total volume traded through exchanges in the last five years at an average of over 93.5%.
The company reported a profit of Rs113.6 crore in 2016-17, up 13% from a year ago. The IPO values the company at 44 times its fiscal 2017 earnings.