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IEX spurts after NSE, ONGC purchase stake in IGX

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Indian Energy Exchange (IEX) jumped 4.33% to Rs 314.30 after the company announced a strategic divestment of 26% of its equity holding in Indian Gas Exchange (IGX) to National Stock Exchange of India and additional 5% equity holding to ONGC.

Under the agreement, NSE will purchase 1,92,07,500 equity shares having a face value of Rs 10 each representing 26% stake of IGX from IEX for Rs 19.20 crore. Further, ONGC will purchase 36,93,750 equity shares representing 5% stake in IGX from IEX for Rs 3.69 crore.

Speaking on the occasion, S N Goel, chairman and MD of IEX and director IGX said, "Having NSE and ONGC as our partners is a natural choice for us in our endeavour to deepen India's gas markets. We are enthused and delighted about the new partnerships. Both NSE and ONGC bring their unique value proposition and leadership edge in markets and hydrocarbon sector respectively to the table. We look forward to working jointly with our new partners in developing gas markets which offer immense scope of growth."

Earlier this year, IEX announced the strategic investments of 5% each by leading players in the gas value chain - Adani Total Gas, Torrent Gas and GAIL (India) in IGX.

Established in 2020, IGX - India's first automated national-level gas exchange for physical delivery of natural gas, envisions to architect India as a market-based gas economy. IGX is authorised and regulated by Petroleum and Natural Gas Regulatory Board. The exchange currently offers trade in five contracts, including daily, weekly, weekday, fortnightly and monthly, at three physical hubs - Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh. The exchange has built a very robust ecosystem with over 500 registered clients and 15 members and has cumulatively traded 100,000 MMBTU volume of gas already.

IEX is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. The company's consolidated net profit grew by 39.5% to Rs 58.14 crore on 42.8% rise in net sales to Rs 85.23 crore in Q3 FY21 over Q3 FY20.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, March 10 2021. 13:50 IST
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