PE-backed Indian Energy Exchange makes dull trading debut
Photo Credit: Shah Junaid/VCCircle

Indian Energy Exchange (IEX) Ltd made a weak debut on the stock exchanges on Monday with its shares listing at a 9% discount to its initial public offering (IPO) price before paring the losses.

Shares of IEX began trading on the BSE at Rs 1,500 apiece compared with the issue price of Rs 1,650, stock-exchange data showed. The stock hit a high of Rs 1,658 apiece and closed at Rs 1,626.45. The benchmark BSE Sensex gained 0.36%.

IEX, which counts private equity firm Multiples Alternate Asset Management Pvt. Ltd and a bunch of other investment firms as backers, is now valued at Rs 4,932.80 crore ($759 million). It was seeking a valuation of Rs 5,004 crore through the IPO.

IEX’s tepid show follows an IPO that struggled to attract investor demand and sailed through only on the final day with support from institutional and retail investors. High net-worth individuals (HNIs) stayed away.

The IPO hit some glitches related to foreign investors’ participation, and IEX was forced to trim its anchor book size to Rs 130 crore from Rs 300 crore. Foreign portfolio investors were not eligible to participate in the offer as per directions from certain custodians to merchant bankers, IEX said in a statement at the time.

Axis Capital, Kotak Investment Banking and IIFL Holdings managed IEX’s IPO.

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