IEX falls on merger buzz | Capital Market News

Last update: 24 Sep 2024 | 15:16 IST

Shares of Indian Energy Exchange (IEX) fell 10.30 per cent to Rs 214.60 on media reports suggesting that the government is considering introducing a market-linking mechanism for power exchanges in the country.

Market coupled is a mechanism that aggregates bid and offer offers from all power exchanges in India, leading to a unified market clearing price (MCP). This has the potential to streamline the energy trading process and ensure more efficient allocation of electricity resources.

The Ministry of Power has reportedly asked the Grid Controller of India (Grid-India) to expedite the completion of a pilot study on market coupling. If implemented, this new model could have a profound impact on the Indian power market.

IEX is India’s leading power exchange offering a nationwide, automated trading platform for physical electricity, renewable energy, renewable energy certificates and energy saving certificates.

In August 2024, the company achieved an electricity volume (including certificates) of 12,040 million units (MU), which means an increase of 35.8% y/y.

The company’s consolidated net profit rose 27.2% to Rs 96.44 crore on 18.8% growth in operating income at Rs 123.56 crore in Q1 FY25 as compared to Q1 FY24.

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First published: 24 Sep 2024 | 15:04 IST