IEX buyback news: Check expected share buyback price; Should you buy? Zee Business Exclusive Research

IEX Share Buyback News, Expected Price: India's power trading platform has announced that it would consider a share buyback programme at a meeting on November 25. If IEX announces a share buyback programme, this would be the second buyback in the history of the company. Previously, the share buyback programme of approximately 60 per cent of the cash bank of Rs 69 crore was announced by the New Delhi headquartered company in 2018 through the tender offer route.

According to Zee Business research, IEX could fix the buyback price at a premium of 18-20 per cent from the current market price. The buyback range could be between Rs 165 and Rs 170, according to Zee Business research.

Usually, a buyback is done at a premium of 18-20 per cent from the share price at the time of the announcement.

As per the calculation, the company could announce a buyback programme of Rs 52 crore. The buyback is most likely to be executed through a tender route. The company is likely to repurchase 31.5 lakh shares. The cash bank of the company has Rs 86-87 crore on September 30.

Market expert Ashu Madan didn't recommend buying at current levels and suggested that one should use the opportunity to sell. He said the fall may hold for a while due to the current buyback news. 

Movement of a maximum of Rs 5 to 15 is expected in the stock, he added.

IEX Share Price NSE 

Shares of the Indian Energy Exchange, NSE: IEX, zoomed 5 per cent on Monday, November 21, on the back of a buyback proposal announcement. 

IEX has yielded a negative return of 45 per cent in 2022 so far, resulting in wealth loss of its investors. In perspective, stock which was available at Rs 258.20 apiece on January 3 is now available at a discount of more than 45 per cent. The stock's 52-week week is Rs 303.80 - Rs 133.85.

IEX is India's premier energy exchange that provides a nationwide, automated trading platform for the physical delivery of electricity, renewable power, renewable energy certificates and energy-saving certificates.

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