IEX shares bounce back 4% after two-day fall; Investec initiates 'long fast'

Indian Energy Exchange shares dropped close to 16 percent in the past two sessions.

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26 Aug, 2025 12:21

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Shares of Indian Energy Exchange surged 4 percent on September 26, bouncing back from a two-day fall when the stock lost close to 16 percent. Meanwhile, brokerage firm Investec initiated a 'long fast' coverage on the stock, with a price target of Rs 215 following its two-day slump.

At 12.15 pm, shares of IEX were trading at Rs 208.72 on the NSE.

The recent sell-off in the stock was largely driven by statements from government officials confirming that market coupling will eventually be implemented. Grid India’s simulation report, submitted to the Central Electricity Regulatory Commission (CERC), will help determine the timeline for market coupling.

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"While there's no clear indication of when this will be notified, we believe the operational implementation will be a lengthy process and may not provide significant immediate benefits to the power ecosystem," Investec noted.

The brokerage forecasts IEX to post overall volume growth of 44 percent, with core volumes (excluding REC) rising by 17 percent in the September quarter. This is expected to drive over 30 percent year-on-year growth in IEX's EBITDA for the same period, the brokerage stated.

Investec anticipates more clarity on market coupling timelines during the company's results but believes that full operational implementation could take at least two years, likely keeping IEX's near-term earnings stable.

Moreover, the rebound in the stock today was also supported by heavy trading volumes as four crore shares already changed hands so far, higher than the one month daily traded average of three crore shares. The trading volumes were even higher in the last session which saw eight crore shares change hands.

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