Indian Energy Exchange (IEX), held by various financial institutions and power sector players with no majority shareholding, is expected to float an initial public offering this financial year, according to market sources.
The IPO is to bring public shareholding in the exchange to 25 percent and will provide some of the existing investors a chance to part with or fully monetize theirIEX respective stakes. No fresh capital will be raised, a source said.
The exchange is profitable and needs no new capital as no expansion is envisaged for the time being, the source said.
Going by the transaction two months ago that saw PTC India Financial Services exiting the power exchange, IEX is valued at around Rs 2,600 crore.
PTC India Financial Services sold its entire shareholding of 1.51 milllion shares in IEX for Rs 132.54 crore. IEX's equity comprises 30 million shares.
The exchange that commands over 90 percent market share has appointed Kotak Securities and Axis Capital as merchant bankers for the proposed IPO. It competes against Power Exchange India, promoted by National Stock Exchange and National Commodity and Derivatives Exchange.
IEX serves as a one-stop shop to buy and sell power for any hour of the day, any day of the week and any week of the month.
IEX counts financial investors like Multiples Alternate Asset Management, Global Energy Fund and Lightspeed Venture Partners as its shareholders.
As per norms set by the power sector regulator, no power trader can hold more than 5 percent in a power exchange with the overall cap for any single entity being capped at 25 percent.
IEX was originally promoted by Financial Technologies India. FTIL is now known as 63 Moon Technologies. The Jignesh Shah-promoted company was forced to exit the exchange in 2014 after National Spot Exchange, a group entity, was caught in a scam.To Get Free Trial
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