IEX Share Price Rises on IGX IPO Buzz and Volume Jump: Can Shareholders Gain While Applying for Associate IPO?

Indian Energy Exchange Share Price Today: Shares of Indian Energy Exchange (IEX) closed in the green on Wednesday after witnessing notable volatility following the announcement of the IGX IPO. IEX's associate company, Indian Gas Exchange Limited (IGX), is set to launch its initial public offering, with its board approving the initiation of the IPO process.

IEX shares closed 0.27% higher at Rs 148.85 per share on BSE with a market capitalisation of Rs 13,376 crore on Wednesday, December 3. The company also reported an 18% rise in its electricity trading volumes for November, according to a BSE filing issued after market hours.

IGX IPO

The board of directors of IGX approved to behin the IPO process of the company, announced its associate firm IEX in a press release on Wednesday. The IPO process will be carried out for the equity shares of face value of Rs 10 each of IGX.

"The IPO will be undertaken by way of an offer for sale by certain existing and eligible shareholders, subject to market conditions, receipt of applicable approvals, regulatory clearances and other considerations. The size of the issue, opportune time and modalities of the issue will be decided in due course. The Company will update the exchanges of all material developments regarding the same, as and when required, as per applicable regulations," stated IEX in its BSE filing.

IGX IPO: Will IEX Shareholders Get The Benefit While Applying?

Many IPOs have a 'reservation quota' for existing shareholders of the parent company. However, it is unclear if the IEX shareholders can use the preference shares mode while applying for IEX associate, IGX's IPO.

"Under current norms, IEX shareholders do not automatically receive any preferential benefit when applying for the IGX IPO. Investor categories eligible for preferential allotment-such as a "shareholder reservation"-must be explicitly mentioned in the DRHP/RHP along with a record date. As of now, there is no public indication that such a category will be created. Unless explicitly stated, IEX shareholders will apply in the retail, NII, or QIB category like any other investor," explained Jickson Sajee, Research Analyst, INVasset PMS.

How Will IGX IPO Benefit IEX Shareholders?

While there is no direct benefit to IEX shareholders over IGX IPO. But a successful IPO listing of IGX in the coming months may help IEX to capitalise on the gains and will indirectly benefit the investors. However, further clarity on IGX IPO is awaited.

"The real benefit for IEX shareholders is indirect. A successful IGX listing can help crystallise the underlying value of IEX's stake in IGX, improve governance visibility, and provide clarity on IGX's growth, margins, and long-term strategy. In turn, that can shape how the market values IEX as a parent entity. Important factors to track include the structure of the offer (fresh vs. OFS), pricing, lock-in provisions for existing shareholders, and post-listing liquidity in IGX. These elements affect both the valuation outcome of IGX and the way IEX's own stock may respond," added Sajee.

IEX Reports Surge in Electricity Trading in November

A total of 4.74 lakh Renewable Energy Certificates were traded during the month, an IEX statement said.It said that enhanced hydro, wind, and solar generation resulted in higher supply liquidity on the exchange platform, leading to a decline in DAM (day ahead market) and RTM (real time market) prices.