Indian Energy Exchange Jumps 20% To Record-High On Bonus Share Plan
NDTV
Indian Energy Exchange soared 20 per cent to a record high on Tuesday, after the energy trading platform said it would consider bonus issue of shares
Indian Energy Exchange (IEX) soared 20 per cent to a record high on Tuesday, after the energy trading platform said it would consider a bonus issue of shares, adding to nearly 24 per cent of gains so far this month as demand for electricity ramps up.
Increased economic activity after the second wave of the coronavirus has resulted in a shortage in coal supply and driven up electricity demand, proving a boon for New Delhi-based IEX which controls 95 per cent of the power exchange market.
IEX's plan to issue bonus shares, which will be considered at an October 21 board meeting along with its quarterly earnings, comes on the heels of a 72 per cent surge in its shares in the three months ended September 30, significantly outperforming a 16 per cent rise in the S&P BSE Power Index.
"Over the next decade, with India increasingly looking at EVs (electric vehicles) and big companies like Tata Power focusing in that area, the demand for energy is going to rise, and IEX is rightly placed for this kind of outlook," said Gaurav Garg, head of research at CapitalVia Global Research.
