Business description from prospectus – Indian Energy Exchange is the largest exchange for the trading of a range of electricity products in India, in terms of traded contract volumes in the financial year 2017 according to the Central Electricity Regulatory Commission (CERC). Electricity products traded over its electronic trading platform comprise (i) electricity contracts in blocks of 15 minutes in the day-ahead-market (the “DAM”), (ii) electricity contracts for fixed terms in the future, such as intra-day contracts, day ahead contingency contracts and contracts up to 11 days ahead, known as the term-ahead-market (the “TAM”) and (iii) renewable energy certificates (“RECs”). The company has commenced the trading of energy saving certificates (ESCerts) on its Exchange on September 26, 2017.
It is one of two exchanges in India that offer an electronic platform for the trading of electricity products and has 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. In the financial years 2016 and 2017, it commanded a 99.6% and 99.4% market share, respectively, of electricity contracts in the DAM, in terms of volume, according to the CERC. According to the CERC, in the financial years 2016 and 2017, 93.7% and 94.8% of the traded contract volumes of electricity contracts in the DAM, TAM and RECs combined, were conducted over its Exchange.
At high level, the products offered by IEX for trading include:
1. DAM (Day-ahead-market) – Electricity contracts in blocks of 15 minutes. The DAM constitutes the majority of the energy contracts that are traded on IEX. IEX has market share of 99.6% in DMA trading.
2. TAM (Term-ahead-market) – Electricity contracts for fixed terms in the future, such as intra-day contracts, day ahead contingency contracts and contracts up to 11 days ahead and
3. RECs (Renewable energy certificates)
IEX is amoung 2 exchanges in India that offer an electronic platform for the trading of electricity products. IEX has over 5800 participants registered on its Exchange of which over 3,500 participants were active as of March 2017.
Strengths
1. IEX Exchange is an online platform. Highly scalable and proven technology infrastructure.
2. IEX is first and largest energy exchange in India with strong brand recognition.
3. India is fast growing domestic market
4. IEX has diverse participant base ensuring liquidity on its exchange
Company Promoters:
Indian Energy Exchange Ltd is a professionally managed company and does not have an identifiable promoter in terms of SEBI ICDR Regulations and the Companies Act, 2013.
Company was initially promoted by Financial Technologies (India) Limited and PTC India Financial Services Limited (PFS). They currently hold no Equity Shares in the company.
Company Financials:
Summary of financial Information (Restated)
Objects of the Issue:
The objects of the public issue are:
1. To achieve the benefits of listing the Equity Shares on the Stock Exchanges and
2. To carry out the sale of up to 6,065,009 Equity Shares by the Selling Shareholders.
Issue Detail:
»» Issue Open: Oct 9, 2017 – Oct 11, 2017
»» Issue Type: Book Built Issue IPO
»» Issue Size: 6,065,009 Equity Shares of Rs 10 aggregating up to Rs 1,000.73 Cr
Offer for Sale of 6,065,009 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
»» Face Value: Rs 10 Per Equity Share
»» Issue Price: Rs 1645 – Rs 1650 Per Equity Share
»» Market Lot: 9 Shares
»» Minimum Order Quantity: 9 Shares
»» Listing At: BSE, NSE
Please contact us today for application at 033 40266300
