Share Price of Indian Energy Exchange Jumps Over 6 Per Cent Recording Sharpest Rally in 2 Months as SEBI Approves Electricity Derivatives
IEX stock has delivered multibagger returns of 258.10 per cent. The stock is up 34.19 per cent in the last three months and 15.51 per cent on a year-to-date (YTD) basis.
The Indian Energy Exchange (IEX) witnessed a significant surge in its share price, marking the sharpest intraday rally in over two months. The stock rose by 6.5 per cent to touch an intraday high of Rs 215.40 on the NSE. As of 11:07 AM IST, the shares were trading at Rs 211.67, up 4.6 per cent. This upswing follows two major developments: the Securities and Exchange Board of India’s (SEBI) approval of electricity derivatives contracts by MCX and robust monthly power trade data released by IEX.
SEBI’s nod to the Multi Commodity Exchange (MCX) for launching electricity derivatives is expected to transform India’s power trading landscape. These cash-settled contracts will not involve physical delivery but will be based on spot prices discovered on exchanges like IEX. The primary objective is to help power generators, distribution companies, and large consumers hedge against price fluctuations in electricity. This is a step forward in enhancing price visibility and enabling better fuel procurement planning for power producers. Although MCX will handle the derivatives, IEX remains the primary platform for the physical delivery of power.
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Electricity derivatives are financial instruments that enable hedging or speculation on electricity prices. These tools are vital for managing volatility in the power market. The announcement of MCX's entry into electricity futures trading brought renewed investor attention to IEX, boosting its stock.
Separately, IEX reported a 14 per cent year-on-year rise in electricity trading volumes for May 2025, totaling 10,946 million units (MU). The Real-Time Market (RTM) alone reached an all-time high of 4,770 MU, up 42 per cent YoY. Despite a 4 per cent decline in national energy demand due to early monsoons, robust supply from hydro, wind, and thermal sources contributed to lower prices. The average price in the Day Ahead Market (DAM) dropped 22 per cent YoY to Rs 4.12/unit, while RTM prices fell 28 per cent to Rs 3.43/unit.
Segment-wise, the DAM saw a 20 per cent volume drop to 3,510 MU. However, the Day Ahead Contingency and Term-Ahead Market grew 38 per cent to 1,684 MU. The Green Market rose 47 per cent to 915 MU. Additionally, the trading of Renewable Energy Certificates (RECs) surged 65 per cent to 17.43 lakh units, with average clearing prices at Rs 345 and Rs 349 per REC.
Over the last five years, IEX stock has delivered multibagger returns of 258.10 per cent. The stock is up 34.19 per cent in the last three months and 15.51 per cent on a year-to-date (YTD) basis. On a one-year basis, it has gained 28.70 per cent, making it a notable performer in the energy and Mid-Cap segment.
Indian Energy Exchange (IEX) is India’s first and leading energy trading platform regulated by the Central Electricity Regulatory Commission since June 2008. The exchange provides an automated system for trading electricity, green energy, and certificates such as RECs and energy-saving certificates. It aims to ensure efficient price discovery and transparent market operations.
Disclaimer: The article is for informational purposes only and not investment advice.