some more references
Thanks to team behind Finsight AI
Thanks for this, Finsight looks to be good.
Also, IEX in its investor presentations has already highlighted the cost saving achieved by the public discoms.
Can be a threat to IEX?
e-auction platforms.pdf (297.8 KB)
this is good for gas producers as well as for IGX and in turn will help IEX. There is substantial increase in domestic gas production esp from KG basin. govt allowing 10% to be sold in exchange will really help in moving the sale from bilateral to exchange over a period of time. its is expected that KG basin will produce around 35 mmscmd by 2024.
apart from this the way prices in exchange are shooting up and the volumes having substantially increased, this quarter we can easily see a substantial jump in the profit esp Aug and Sept are usually high volume months for IEX.
The annual report didn’t throw any significant light on terms of divestment of gas exchange. Was divesting 45% of its stake in igx so insignificant that nothing about it was mentioned 
It’s is a regulatory requirement that IEX has sell its holding.
Shareholding Pattern of Gas Exchange;
At no time all the members of an authorized gas exchange shall in the aggregate, directly or indirectly through associates, together with persons acting in concert for any of them, acquire or hold more than forty-nine (49) percent of the paid-up equity share capital in authorized gas exchange.
Also there are more requirement if you are member of that exchange.
A clean overview for a novice.
Disc: Tracking but not invested.
I, being a rural Rajasthani netizen, am experiencing a lot more power cuts for the last 5-6 days. And the newspaper headings are flushing with power cuts due to coal shortage in thermal power plants. Coal India is not supplying as per the requirements of plants and even some plants in Rajasthan has been shut owing to coal problem. The Discoms here are procuring power from exchange at Rs. 20/unit now which generally available at very lower rates.
Tata power and Adani Power plants located in Mundra, Gujarat have been told to sell their generated power through Exchange only despite having PPAs by issuing a special order under provisions of Electricity Act, 2003.
As I believe, this is making our investment conviction concrete.
This seemed to have been missed?
Press Information Bureau (Posted On: 26 JUL 2021 2:16PM by PIB Delhi )
With the aim to promote and sustain an efficient and robust gas market and to foster gas trading in the country, PNGRB has granted authorization to Indian Gas Exchange Limited on 02.12.2020, to set up and operate Gas Exchange.
IGX is going to be a big thing
market size may grow a lot but, the government policy risk still stays.
Pic 1: PTC Q4FY21 call
Pic 2: PTC Q1FY22 call
This is in sync with what Mr SN Goel (MD, IEX) has also been saying for a while, that market coupling cannot be implemented without MBED. If both are implemented together, any possible loss of volumes to other exchanges would be compensated by growth in the overall short term market. If only MBED is implemented (which I doubt will happen) it’s blue sky for IEX and current stock price would look very undervalued.
MBED will not be applicable for hydro and renewable .!
Will it help IEX to some extent since renewable is going to be big volume driver in coming decade.
Any insight ?
Could you please tell me more about,how volume loss would be compensated?
It may be silly question,I am still learning.It would be helpful if you explain bit more.
Thank you
Govt intention is to bring MBED then implement Market coupling .Market coupling operator would aggregate the bids placed across the exchanges and discover a uniform price.If it happens IEX will loose its moat.But if few of IEX product like renewal is excluded of MBED and later from Market Coupling (not sure about govt intention) that means IEX still have moat around this product in future because of price discovery happen at exchange level.But if renewable is added to Market coupling without added to MBED then it will be double blow for the company
Good write-up - IEX: Largest Power Exchange in India - PA Wealth Blog
MBED will increase the power traded through exchanges, so even though the volume willl be split across exchanges, the overall power traded will be much higher.
