Indian Energy Exchange Ltd (IEX) on Friday said it would launch its Rs1,000 crore initial public offering (IPO) on 9 October. The share sale will close on 11 October.
IEX, India’s largest energy exchange, has priced its shares in a range of Rs1,645-1,650 per share. At the upper end of this price band, the initial share sale values the firm at Rs5,000 crore.
The valuation is being pegged at 44 times IEX’s earnings for fiscal 2017. The company reported a profit of Rs113.6 crore in 2016-17, up 13% from a year ago.
The IPO is a pure offer for sale where all the existing investors will be selling a total of around 6.06 million shares. Tata Power Co. Ltd plans to fully exit IEX. Tata Power will sell its entire 1.25 million shares, which at the upper end of the price bad will fetch Rs206 crore.
Aditya Birla Group’s private equity arm, which currently holds 6.5% in IEX, plans to sell a 1.5% stake for around Rs84 crore.
Renuka Ramnath-led Multiples Alternate Asset Management Pvt Ltd, which holds 18% in IEX, will offload 2.73 million shares for about Rs450 crore.
Other investors which include private equity (PE) fund True North (formerly India Value Fund Advisors), US-based venture capital firm Lightspeed Venture Partners and PE firm Madison India Capital will be making a part exit from IEX. They will collectively sell shares worth about Rs250 crore.
IEX has appointed Axis Capital Ltd, Axis Capital Ltd, Kotak Mahindra Capital Co. Ltd and IIFL Holdings Ltd to manage the IPO.
IEX will be the second bourse to go public. In 2012, Multi Commodity Exchange of India Ltd, India’s largest commodity bourse attracted bids worth around Rs35,000 crore for an issue size of Rs663 crore, Mint reported.
So far this year, 24 companies have raised around Rs30,800 crore through IPOs. In 2015 and 2016, 47 companies had tapped the IPO route to raise about Rs40,107 crore, data from primary market tracker Prime Database shows.