Big update in IEX market coupling case; stock rises despite weak market

Shares of Indian Energy Exchange (IEX) rose nearly 2 per cent on Monday, May 11, even as the broader market remained under pressure.

The stock gained after reports said the Supreme Court issued a notice to the Central Electricity Regulatory Commission (CERC) on IEX’s petition related to the market coupling issue.

IEX shares opened at Rs 133.76 and climbed as much as 2 per cent intraday to Rs 137.34 on the NSE. The stock later traded near the day’s high despite weakness in benchmark indices. At the same time, the Nifty 50 index was down more than 1 per cent at 23,918.20, falling 257.95 points.

Zee Business, quoting Informist, reported that the Supreme Court has sought a response from the Central Electricity Regulatory Commission (CERC) on IEX’s plea concerning market coupling, but declined to pass any interim order in the matter.

However, the Supreme Court also said it will not pass any interim order in the market coupling case at this stage.

What is the market coupling issue?

Market coupling is a mechanism under which power prices across multiple electricity exchanges are discovered through a unified process. The proposal has remained a key overhang for IEX investors because the company currently dominates India’s spot power trading market.

IEX stock performance

IEX shares have remained volatile over the past one year amid uncertainty around the market coupling framework. The stock has a market capitalisation of around Rs 12,180 crore. Its 52-week high stands at Rs 215.40, while the 52-week low is Rs 114.60.
The stock currently trades at a price-to-earnings (P/E) ratio of 24.62.