Board of IEX approves buyback of shares at ₹200, stock ended on a green note

With a market valuation of ₹13,515.99 Cr, Indian Energy Exchange Ltd. (IEX) is a mid-cap company that operates in the financial services industry. It offers a national online trading network for the physical delivery of electricity, renewable energy, and certificates. The firm is India's leading energy marketplace. The IEX ecosystem is strong, with 6,800+ participants spread over 29 States and 5 Union Territories, including 500+ conventional generators and more than 55 distribution utilities. Additionally, it has a sizable base of 4400+ commercial and industrial clients, including those from the metal, food processing, textile, cement, ceramic, chemical, automobile, information technology, institutional, housing, and real estate sectors, as well as corporate bodies. The Board of Directors today has approved buyback of shares at ₹200 apiece.

The company has said today in a stock exchange filing that its Board of Directors has “Approved the proposal of Buyback of fully paid-up equity shares having a face value of Re. 1/- (Rupee One only) each of the Company at a price not exceeding Rs. 200/- (Rupees Two Hundred only) per equity share (“Maximum Buyback Price”) and for an aggregate amount not exceeding Rs. 98,00,00,000/- (Rupees Ninety-Eight Crores only) (“Maximum Buyback Size"), from the shareholders of the Company (other than the promoters, the promoters group and persons in control of the Company) payable in cash via “Open Market” route through the stock exchange mechanism which is less than 15% of the aggregate of the total paid-up share capital and free reserves of the Company, based on the latest audited standalone and consolidated financial statements of the Company as on March 31, 2022, in accordance with the provisions under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (“Buyback Regulations”), as amended and the Companies Act, 2013, as amended, and other applicable provisions (the process hereinafter referred to as the “Buyback”). At the Maximum Buy-back Size and the Maximum Buy-back Price, the indicative maximum number of equity shares to be bought back under the Buy-back would be 49,00,000 equity shares (representing 0.55% which is less than 25% of the existing paid-up equity share capital of the Company), The Maximum Buyback size represents 14.95% and 14.92% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the latest audited standalone and consolidated financial statements of the Company as on March 31, 2022, respectively. The actual number of equity shares bought back during the Buy-back will depend upon the actual price, excluding the Transaction Costs, paid for the equity shares bought back and the aggregate consideration paid in the Buy-back, subject to the Maximum Buy-back size.”

From Rs. 113.4 Cr in Q1FY'23 to Rs. 113.8 Cr in Q2FY'23, the revenue rose by 0.3% QoQ on a consolidated basis. PAT increased from Rs. 69.1 Cr to Rs. 71.2 Cr up 3% QoQ, with a margin of 63%. Daily contracts for up to 90 days, weekly contracts for up to 12 weeks, and monthly contracts for up to three months were among the new products that IEX added to its range of longer-duration contracts during the quarter ended September. The capacity for installed power generation grew to 408 GW in Q2FY23. Renewable energy's (RE) contribution climbed to 165 GW or 40% of all installed power capacity. In comparison to 23.4 BU in Q1 FY'23, the Exchange traded 23.1 BU of electricity during the quarter. The volume was made up of 19.7 BU in the conventional power market, 1.5 BU in the green market sector, and 19.14 lac Certificates, or 1.9 BU, in the market for Renewable Energy Certificates (REC).

The shares of IEX closed today at ₹150.90 apiece, up by 2.69% from the previous close of ₹146.95. In trade today, the stock recorded a total volume of 15,386,976 shares. On a YTD basis, the stock has fallen 41.56% so far in 2022.