IEX Shares in Focus: Market Coupling Case Hearing and Strong IGX Volumes Expected
Indian Energy Exchange (IEX) is under the spotlight as the Electricity Appellate Tribunal reviews its plea on market coupling norms. The tribunal has requested IEX to file a revised plea, including new respondents such as Grid Corporation of India, Power Exchange of India, and Hindustan Power Exchange. This comes after IEX shares dropped 30% following regulatory approval of market coupling implementation for the Day Ahead Market, set for January 2026. The new system aims to establish uniform pricing across exchanges. Despite recent challenges, IEX's subsidiary, Indian Gas Exchange (IGX), projects growth from 2% to 4-5% market share by 2030, with expectations of strong volumes due to stable gas prices and favorable policies.
*this image is generated using AI for illustrative purposes only.
Indian Energy Exchange Ltd. (IEX) shares are drawing attention as the Electricity Appellate Tribunal conducts a hearing on the company's plea regarding market coupling norms. This development comes in the wake of significant regulatory changes that have impacted the company's stock performance.
Key Developments
The Electricity Appellate Tribunal has asked IEX to file a revised plea, adding new respondents including:
- Grid Corporation of India
- Power Exchange of India
- Hindustan Power Exchange
IEX shares experienced a 30% decline following the Central Electricity Regulatory Commission's approval of market coupling implementation for the Day Ahead Market, scheduled for January 2026.
Market Coupling System
Under the new system:
- Different power exchanges will operate as market coupling operators on a round-robin basis
- A Market Coupler will collect and match buy-sell orders
- This process aims to discover uniform pricing across all exchanges
Stock Performance
- IEX shares have shown recovery from lows of around ₹130.00
- Jefferies maintains an 'underperform' rating on IEX with a target price of ₹105.00
Market Impact
The ongoing hearing and potential outcomes of the market coupling norms could have significant implications for IEX and the broader power exchange market in India. Investors and market participants are closely watching these developments, as they may influence the competitive landscape and operational dynamics of power trading in the country.
IGX Gas Market Share Projection
In a related development, the Indian Gas Exchange (IGX), operated by IEX, is projected to increase its share of total gas usage. The exchange's market share is expected to grow from the current 2% to 4-5% by 2030. This represents a potential doubling of IGX's market penetration in India's gas trading sector over the next several years.
Positive Outlook for IGX Volumes
IEX has commented that stable gas prices and positive policies are expected to help maintain strong volumes on IGX. This outlook suggests that the company anticipates continued growth and stability in its gas exchange operations, which could contribute positively to its overall performance.
As the situation unfolds, it remains to be seen how the Electricity Appellate Tribunal's decision might affect IEX's market position and future prospects in the evolving regulatory environment of India's power sector. Additionally, the projected growth in IGX's gas market share, coupled with stable gas prices and supportive policies, could provide a new avenue for expansion and revenue generation for IEX in the coming years.
Historical Stock Returns for Indian Energy Exchange
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.13% | -5.43% | -0.09% | -26.95% | -21.77% | +124.73% |
19
