Indian Energy Exchange, a significant player in the energy sector, has had a tough time at the bourses in the past few months. Shares of the company have slumped close to 23% in the past month.
The Investment: If you had invested ₹10,000 in IEX a year ago, you would have bought approximately 54 shares. With the current market price at ₹125, your investment would now be worth approximately ₹6,858.75. That’s a decrease of over 31% in just one year.
Background: The company’s shares slumped deep in the red on Friday following news reports that the power ministry has directed the Central Electricity Regulatory Commission (CERC) to execute the process of market coupling. This proposed change would transform Exchanges into mere bid aggregation platforms, with price discovery being handled by a centralised Exchange, likely operated by a government entity. Consequently, this would diminish the competitive advantage of liquidity that IEX currently enjoys.
IEX’s Q4 results showed flat growth in terms of profit for the fourth quarter of the financial year 2023. The company's net profit for the quarter stood at ₹88.34 crore, down 0.02% from ₹88.36 crore in the corresponding period a year ago. The revenue from operations for the quarter came at ₹107.03 crore, down 4.51% from ₹112.08 crore in the corresponding quarter a year ago.
Price Action: IEX’s share price was down 8.76% to trade at ₹124.50 in the early hours of trading on Friday.
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