Synopsis:
SEBI has barred eight entities for insider trading in IEX and seized Rs. 173 crore in illegal gains.
A small-cap Company that provides an automated platform and infrastructure for carrying out trading in electricity units for physical delivery of electricity is in the spotlight after SEBI has barred entities from insider trading.
With the market capitalization of Rs. 12,007.53 crore, the shares of Indian Energy Exchange Ltd is trading at Rs. 134.68, down by 0.52 percent from its previous day’s close price of Rs. 135.36 per equity share.
What’s the News?
SEBI has barred eight entities from the securities markets for insider trading and recovered Rs. 173.14 crore in illegal gains. The entities, Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma and Sanjeev Kumar, had access to unpublished price-sensitive information (UPSI) related to a CERC order, and their trading patterns indicated transactions driven by insider knowledge, according to SEBI Whole-Time Member Kamlesh Varshney.
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About the Company & Financials
Indian Energy Exchange Limited (IEX), based in Noida and incorporated in 2007, provides an automated trading platform for electricity, renewable energy, and energy certificates.
The company operates multiple markets, including the Day-Ahead Market (DAM) for next-day electricity trading, the Term-Ahead Market (TAM) for intra-day and term-ahead contracts, and the Real-Time Market (RTM) with half-hourly auctions for near-immediate delivery.
IEX also facilitates renewable energy trading through the Green Day-Ahead Market (GDAM) and Green Term-Ahead Market (GTAM), which include intraday, daily, and weekly contracts.
Additionally, it offers Cross-Border Electricity Trade to integrate India’s power market with South Asia and the High Price Day-Ahead Market (HPDAM), a double-sided closed auction for next-day electricity. The platform also provides renewable energy and energy-saving certificates, making it a comprehensive hub for electricity and green energy trading.
A return on equity (ROE) of about 40.5 percent, a return on capital employed (ROCE) of about 53.6 percent and debt to equity ratio at 0.01 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 27.6x lower as compared to its industry P/E 63x.
Indian Energy Exchange Limited (IEX) reported Q1 FY26 revenue of Rs. 140 cr, up 13 percent YoY from Rs. 124 cr in Q1 FY25 and down by 1 percent QoQ from Rs. 141 cr in Q4 FY25. Profit rose to Rs. 113 cr, up 22 percent YoY from Rs. 93 cr and 1 percent QoQ from Rs. 112 cr.
Written by Akshay Sanghavi
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