Bengaluru: Indian Energy Exchange (IEX) jumped 20% to the highest record on Tuesday, after the energy trading platform said it would consider the issue of stock bonus, adding nearly 24% of the increase as far as this month due to further demand for electricity.
Increasing economic activity after the second wave of Coronavirus has resulted in a lack of coal supply and reducing electricity demand, proving the Boon for New Delhi based IEX which controls 95% of the power exchange market.
IEX plans to issue a bonus stock, which will be considered at the October 21 council meeting along with its quarterly income, coming on the heel of a 72% surge in its shares in the three months ended September 30, significantly outperformed a 16% increase in the S & P power index BSE .
“Over the next decade, with India increasingly view EVS (electric vehicles) and large companies such as Power Power that focuses on the area, energy demand will rise, and IEX is properly placed for this kind of prospect,” said Gaurav.
Garg, research head at Capitalvia Global Research.
Tata shares have risen 62% this month at the last close.
In the latest IEX monthly update, which is used by electrical manufacturers, distributors and corporates to buy and sell electricity, the word volume of electricity traded in October was 59% higher than a year ago.
A top court moves earlier this month, which allows electricity to trade as other commodities with advanced contracts and derivatives on exchanges, will help increase volume on electrical exchanges such as Iex, ICICI Direct Research in a note.
About 33 million IEX shares traded at 0655 GMT, more than three times the average of 30 days around 11 million shares.
Stock, which has more than tripled in the value so far this year, traded 15.3% higher at Rs 918.8.