Indian Energy Exchange files for IPO; Multiples, Aditya Birla PE to partially exit

Private equity-backed Indian Energy Exchange Ltd (IEX), the country’s first exchange for trading of electricity and renewable energy certificates, on Friday filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

The IPO comprises sale of 6.06 million shares through a secondary offering by existing shareholders, including private equity backers, power companies, financial institutions and a former top company official. It will see 20.83% of the total shareholding change hands, according to the DRHP.

Renuka Ramnath-led Multiples Alternate Asset Management, the PE arm of Kumar Mangalam Birla-led Aditya Birla Group and Madison India Capital will partially exit their investments, showed the draft document. Multiples has proposed to sell 2.72 million shares, representing 9.37% stake in the company. It holds 3.87 million shares in IEX.

Tata Power Company Ltd will completely exit its almost-10-year-old investment through the IPO by selling 1.25 million shares. The public issue will also see non-banking financial companies AF Holdings LLC and Kiran Vyapar Ltd sell shares, and a small portion being sold by former IEX managing director and CEO Jayant Narhar Deo.

IEX is a professionally-managed company, and does not have an identifiable promoter in terms of the SEBI ICDR Regulations as well as Companies Act 2013.

The total issue size is estimated at Rs 600-650 crore ($93-100 million), said a person with direct knowledge of the matter, requesting anonymity. “The IPO is targeted for the second half of the fiscal,” the person added.

The IPO deal will value IEX at roughly Rs 3,000 crore ($465 million), as per VCCircle estimates.

IEX will join a clutch of exchanges and financial market infrastructure companies that have either gone public over the years or are planning to do so.


Source :

Smart Grid Bulletin July 2019

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