IEX slumps 5.5% on market debut

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Indian Energy Exchange Ltd is now trading at Rs 1638, down by Rs 12 or 0.73% from its previous closing of Rs 1650 on the BSE.

The IPO was oversubscribed by just over two times.

Shares of Indian Energy Exchange (IEX) made a tepid debut on BSE on Monday, as the scrip got listed at Rs 1,500, a 9.09 per cent discount to its issue price of Rs 1,650.

IEX's 10 billion rupees ($153.7 million) initial public offering was priced at 44.1 times 2016/17 price-to-earnings, higher than BSE Ltd's 24.3 times and Multi Commodity Exchange of India's 42.5 times, according to brokerage Centrum, although the exchanges have different focus areas.

IEX is the first energy exchange in India, having commenced operations in June 2008. The non institutional investors (NIIs) category was subscribed 0.85 times. The shares allotted to FPIs were offered to institutional investors who bid in the QIB category.

The stock opened at Rs 1500, the issue price, and after advancing to Rs 1649 subsequently, eased again and is now hovering around Rs 1640, down by about 0.6%. IEX had earlier cut its anchor allocation to 7.89 lakh shares from 18.19 lakh shares. DAM, term-ahead-market (TAM) and renewable energy certificates (REC) put together constituted 93.7% (FY16) & 94.8% (FY17) of the traded contract volumes of electricity contracts that were conducted over the company's exchange. Over 4,200 registered participants were eligible to trade electricity contracts and over 3,900 registered participants were eligible to trade RECs, as of March 2017. For the year-ended FY17, the company posted revenue of Rs 203.9 crore over a net profit of Rs 113.6 crore with a return on equity (ROE) of 40 percent.