Curious Case of Indian Energy Exchange (IEX)

As per Livemint, ICICI Prudential Mutual Fund has raised the stake in the IEX from 4.64% to 5.22% after the Market coupling news which has caused the IEX share price to crash in July. Currently, IEX is rovering around 140.25 as on 18th August, 2025, providing the YTD negative return of 28.36% (major wealth destroyer in FY2025).

While reading the investor presentation of July 2024, it has been found that MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT) own around 1.63% of the company along with LIC at 4.08%.

IEX’s Q1 FY26 Performance

Despite the regulatory shock, IEX reported:

• Total revenue up 14.7% year-on-year.
• Operating income rose 16.7%, with margins at 77.5%.
• Electricity volumes at 32.4 billion units, up 14.9% year-on-year.

However, these figures did little to offset investor fears about the long-term impact of market coupling.

Impact of CERC order can be witness on the Share Volume of IEX where around 8.51 lacs of shares has exchanged the hands, putting the presssure on the IEX Prices.

Conclusion:

It is interesting to see how Govt will implement the Market Coupling & Price Discovery infrastructure in India as in Europe’s market coupling has been a collaborative effort to level the playing field, with no single exchange dominating to the same extent. The success of market coupling in Europe relies on coordination among NEMOs, TSOs, and RCCs, supported by EU regulations, contrasting with India’s nascent implementation which might faces uncertainties around execution. It will interesting to see how it will impact the valuation of IEX in future.

-Vikalp Saini