Oct 09 , 2017 - Oct 11, 2017
Rs.1,645 – Rs.1,650 per Equity Share
It is largest exchange for the trading of a range of electricity products in India (our “Exchange”), in terms of traded contract volumes in the financial year 2017 according to the Central Electricity Regulatory Commission (the “CERC”).
It is one of two exchanges in India that offer an electronic platform for the trading of electricity products and have a substantial majority market share among the power exchanges in India. The DAM constitutes the substantial majority of the energy contracts that are traded on our Exchange.
|Issuer||India Energy Exchange Limited (View Report)|
|Issue Type||100% Book Built Issue IPO|
|Issue Period||Issue Opens: Oct 09, 2017|
|Issue Closes: Oct 11, 2017|
|Price Brand||Rs.1,645 – Rs.1,650 per Equity Share|
|Issue Size(Rs.)||Rs.998 -1,001 Cr|
|Face Value||Rs.10 per Equity Share|
|Minimum Order Quantity Retail:||9 Shares and in multiples thereof|
|QIB||50% of the issue size (3,032,503 Equity Shares)^|
|NIB||15% of the issue size(909,752 Equity Shares)^|
|Retail Individual Bidders||35% of the issue size (2,122,754 Equity Shares)^|
|Registrar||Karvy Computershare Pvt Limited|
|Listing||NSE & BSE|
|Book Running Lead Managers||Kotak Investment Banking, Axis Capital, IIFL Holdings Ltd|
Indian Energy Exchange (IEX) is one among the two exchanges in India that offers electronic platform for trading electricity products with a majority of market share. The products traded on exchange comprises of 1. Day-Ahead-Market (DAM) 2. Term-Ahead-Market (TAM) 3. Renewable Energy Certificates (RECs) and 4. Company also expects to commence trading of Energy Savings Certificate (ESCerts) by first half of FY18. Trades with respect to DAM and TAM are physically settled through physical delivery of electricity itself.
IEX with very strong brand recognition provides delivery based contracts facility of E-trading on a robust platform removing the counter party risk. As of August 31, 2017 IEX has over 3200 active participants of 5900 registered participants.
On performance front, the revenues and Net profit have grown at a CAGR of 14.5% over FY13-17, with EBITDA margins remaining more or less flat at near 76%.The P/E multiple comes to 44x for an annualized earnings of FY17 at the higher end of the IPO price band of Rs1650/share. The P/B multiple comes to 18x on FY17 BV. Though the valuation of the issue looks on a higher side, based on its bright prospects and strong historical performance we assign a rating of 3 out of 5.
Public issue of 60,65,009 equity sharesof Rs. 10/-each (“equity shares”) of India Energy Exchange Ltd (Company or Issuer).