Don’t know how to read this, positive or negative. I don’t think there are any promoters’ group for IEX so don’t quite get “other than the promoters, the promoter group”.
With close to 62% Public holding (553,037,635 shares) and at average of say Rs. 160, 6125000 shares maximum can be bought back that is 1.1% from public.
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In-principle approval for the formation of a wholly-owned subsidiary company in India to explore the business opportunities in Carbon Market. 
@Tar had released an article on carbon markets/trading. Do read that for more understanding on the size of opportunity.
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Trying to create thumb rules here for lead indicators showing likely volume picking up… does daily average price <= 3 sound reasonable here?
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This could be potential game changer for IEX
Can you share the link for article please
It appears the IEX management is dynamic. Entering in to carbon exchanges is need of the hour.
Carbon trading is a growing market. As per an article below, the market for carbon credits increased by 164% globally in 2021. It is anticipated to reach $100 billion by 2030
There are 80 nations who have signed Kyoto protocol 1997 for reducing carbon emissions of which India is also a signatory. The resolution was reaffirmed once again in Paris agreement in 2015 by all member nations. The protocol calls for carbon reduction and allows carbon trading among member nations.
Currently there are 6 exchanges existing else where in the world …but this is going to be the first one to be set up by IEX in India. international Trading among nations are also permitted as per Kyoto protocol.
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Govt. policies have been impacting IEX volumes and thereby its profits. A few years back when energy prices were on a downward trend, govt wanted SEBs to forgo PPAs and
embrace power trading to take advantage of lower prices where the surplus power was offered. This led to a surge in volumes on IEX and optimism for future growth.
Post covid with rise in power consumption and then with Ukraine war, the surplus power situation changed along with hefty price rise. Govt stance has changed now. Even though PPAs have been discontinued, govt has been encouraging long term power purchase tieups via various initiatives. This ensures that SEBs continue to get power at a fixed price and there is a predictability in both costs and availability. This would mean that trading of surplus power on IEX will go down. As long as energy costs remain elevated, SEBs would prefer to have long term stability and avoid being exposed to volatility. The volumes on exchanges will reduce to take care of peak time surge usage rather than regular power needs.
Disc: have a small position
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I doubt anything changes for IEX in short to medium time frame due to the Carbon Energy Exchange. Not taking away anything from management, in my view such new initiatives take time to materalize and meaningfully contribute to bottom line.
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As per ET now TV news , IEX has been able to retain its market share. But it needs to be confirmed thr other sources.
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- GOI claims to increase coal production to reduce dependency on imported coal due to energy crisis in the world. Higher availability of coal will reduce prices on the exchanges of electricity which will lead to increase in Discom optimization and increase access volumes.
- Electricity consumption will increase by 6% in the next 8 years.
- Increase in demand will lead to an increase in volume on exchanges. This is expected to happen in the future quarters.
- IGX achieved breakeven in the first year of operations. Robust Volume growth is expected in the next 5 years.
- Prices on exchanges are lower than Bilateral contract so industries can source power to reduce input costs and Discoms can source power on exchanges to meet shortages.
- Carbon Market will be established in the country. Given IEX an opportunity to diversify further after IGX.
- End of this fiscal year is expected to be stronger.
- Added new contracts in the quarter which are expected to contribute 40% to the traded volume in the coming quarters. Participants are showing interest in the new contracts.
- Planning to launch energy derivatives but will be launched on SEBI regulated markets which is either MCX, BSE or NSE. This should start in Dec/Jan as planning is going on for the same between CERC & SEBI.
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Parliament passes bill to mandate use of Green energy and to set up Carbon trading market.
The trading of carbon credits would be done on the power exchanges and Central Electricity Regulatory Commission (CERC) would be the regulatory body.
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IEX becomes India’s First Carbon Neutral Power exchange.
Link below is a press note released today by IEX and today’s article from Moneycontrol.com
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IEX forms wholly owned subsidiary to explore business opportunities in Carbon Market…
IEX.pdf (518.1 KB)
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IEX Management Interview:
- This year volume growth will be flat. Currently it is -4%.
- Next year, they are expecting volume growth of 15-20% depending upon the availability of fuel.
- Gas exchange is doing wonderful. The volume growth is very good and expected to continue the traction. It will profitable this year.
- IEX Forms Wholly Owned Subsidiary to Explore Business Opportunities in
Carbon Market
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That last line suggests that Amazon has simply ensured their supply of renewable energy and got themselves a trading license so that they can sell the surplus(When they are not using up all of it) on the exchanges .While its true AWS came out of a similar situation , this one looks like a simple cost optimization / resource utilization maneuver and not significant for the power exchanges .
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More likely that it’s about ESG compliance and showing that they are in the RE space too. And can claim some “green energy” credits.
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