IEX Shares Trade Weak As CERC Grants Final Go-Ahead For India's Third Power Exchange

Shares of monopoly firm Indian Energy Exchange (IEX) in trade on June 30, 2022 traded soft and hit the day's low price of Rs.159.2 per share. Last at the time of writing this copy at around 9:58 am, shares of the power trading firm traded soft by over 1% at Rs. 159.55 per share. There has been seen a sharp collapse in the share price of IEX which is currently trading almost 50% lower than its 52-week high price of Rs. 318.67.

Now the electronic system based power trading platform-IEX is all set to confront higher competition. This is as the operations at India's third power exchange, Hindustan Power Exchange (HPX) looks imminent, with final approval from the Central Electricity
Regulatory Commission (CERC) on June 27. CERC's approval was under Regulation 28 of Central Electricity Regulatory Commission (Power Market) Regulations 2021 for approval of the technology to be used by the exchange.

The leading brokerage firm ICICI Direct sees the development to have a neutral impact on the company. Further, the brokerage states, "This will be India's third power exchange after IEX and PXIL but it remains to be seen how it affects the market share of current players specially IEX, which owns around 95% of share and has robust ecosystem of 6,800+ participants located across 29 states and 5 union territories comprising 55+ distribution utilities and 500+ conventionalgenerators".

Indian Energy Exchange operates as a power exchange. It offers an online electricity trading platform for trading, clearing, and settlement operations.