This smallcap power trading firm gains 6% on monthly business update; stock nears 52-week high price

Shares of Indian Energy Exchange zoomed up to 6 per cent to day’s high price of Rs166.40 in Thursday’s session after the company released the business update for the previous May month.

At the last count, shares of the power trading platform traded higher by 4.87 per cent at Rs 164.7 apiece on the BSE. The stock at day’s high is just over 4 per cent shy of its 52-week high price of Rs 173.30 scaled on January 1, 2024.

“India’s premier electricity exchange, achieved a monthly overall volume of 10,633 MU, in May, marking a 28.9% year-over-year increase,” said the company in its filing with the exchanges.  This is a big positive for the company.

The electricity volumes at 9,568 MU, increased 21% YoY. The renewable energy certificates (REC) at 1,055 MU, increased 640.3% YoY, it added.

At Rs 165 per certificate, the REC market recorded an all-time low price in the trading session held on 29 May. Such low prices provide an opportunity to obligated entities (DISCOMS and Captive Power Producers) to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations. 

Proactive measures taken by the government and the regulators, including the sale of surplus unrequisitioned power on power exchanges, increased fuel supply and ensuring higher availability of generating units led to an increased sell liquidity on the exchanges which kept the prices under control on exchanges, added the company’s release.

The Day-Ahead Market (DAM) volume increased to 4,371 MU in the review month, from 4,066 MU a year-ago, registering an increase of 7.5% YoY. The Real-Time Electricity Market (RTM) reported the highest ever monthly traded volume in May. The RTM volume increased to 3,352 MU in May, from 2,424 MU in May of the previous year, registering an increase of 38.3% YoY.  On an average more than 100 MUs were traded daily in the RTM segment in May’24. 

Consistent growth of the RTM segment is a testimony that distribution utilities and industries are efficiently balancing their power demand-supply on a real-time basis

IEX share price performance 

Shares off IEX in the last one year have delivered just 8 per cent return.

About IEX

IEX is India’s premier electricity exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable energy and certificates including renewable energy certificates as well as the energy saving certificates.