Can you tell me why the stock of India Energy Exchange (IEX) is seeing such huge volumes and price movement in the market?

The company (IEX) has a number of factors in its favour. Apart from the recent bonus issue, IEX has also benefited from the spurt in demand for power trading as power companies are buying renewable power credits in the IEX. The stock was up 13% on Friday to scale the Rs.304 levels. Nearly 6% of the total equity or 5.66 crore shares exchanged hands on the NSE and BSE making it the most liquid share in terms of volumes on Friday.

The bonus issue at 2:1 entails 2 shares for every share held. The stock is up nearly 50% just in the last one month and the stock is up 140% in the last 6 months, beating the Sensex and Nifty by a huge margin. The stock is up four fold in the last 1 year. This has been spurred by the 54% growth in electricity trading volumes on the IEX in November to 9,477 million units.

Conventional energy volumes were 6,333 MU, green energy was 457 MU and certificate market was 2,687 MU. IEX is India’s premier energy exchange and it facilitates an automated trading platform for physical delivery of conventional electricity, renewable energy, renewable energy certificates and energy saving certificates. It is a market driven mechanism for price discovery.