Indian Energy Exchange (IEX) that was issued at the price of Rs 1,650 opened at Rs 1,500 on the NSE (National Stock Exchange) thereby suffering a fall of 9 percent on Monday. After the listing, it did manage to show some recovery and in fact touched its issue price during an intraday high, but again slipped back by 1.5%. It was a Rs 1,001 crore IPO (initial public offer) that was offered in the price band of Rs 1,645-1,650 and the issue was open for subscription from October 9-11. There was a total of 60,65,009 equity shares on offer which included the anchor position of 7,89,120 shares too. The investors gave a warm response to this very first IPO by a power exchange in the country and it was oversubscribed 2.28 times.
The anchor investors’ portion was reduced by the company from 18,19,501 shares to 7,89,120 shares. So, the foreign portfolio investors were not allowed to invest in it through the primary market route, but they can always trade in the secondary market. However, as there was some lack of clarity as to whether the foreigners were allowed to invest in it or not, it led to a weak opening at the NSE according to the people familiar with the matter.
The stock has been admitted to the ‘B’ group of securities on the exchange. Given the FY17 EPS, the stock is valued nearly 43.5 times at the issue price of Rs 1,650. The experts are of the view that the IEX has a strong growth potential and it will deliver on its promise of higher revenue and profit.