PE-backed IEX files for India IPO

The company will offer up to 6.1 million shares, all held by existing shareholders including Aditya Birla Private Equity, Lightspeed Venture Partners, Madison India Capital Partners and Multiples Alternative Asset Management. Pricing for the shares has not been announced. The sale represents about 21% of the company's total share capital.

None of IEX’s PE investors will make a full exit in the offering, and Motilal Oswal Private Equity will not sell any shares, according to the prospectus. The offering is intended to enhance the company’s brand while providing liquidity to existing shareholders.

With nearly 6,000 registered and 3,500 active participants, IEX claims to be the largest exchange for a range of electricity products in India. For the year ended March 2017, it reported a 99.6% market share of contracts traded in the day-ahead market (DAM) and 93.7% of electricity contracts by volume in DAM, term-ahead market and renewable energy certificates combined.

The company was formerly sponsored by Financial Technologies India (FTIL), until credit troubles with a subsidiary in 2014 resulted in a regulatory decree that FTIL could not hold a stake in any stock exchange. Aditya Birla bought part of FTIL’s stake for INR3.57 billion ($55 million) in 2015 as part of a consortium of investors. Later that year FTIL sold its remaining stake to several investors including Madison and Milltec, a portfolio company of Multiples.

For the year ended March 2017, IEX reported revenue of INR2.4 billion, up from INR2 billion the year before. Over the same period, net profit grew from INR1 billion to INR1.1 billion.

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• Topics
• South Asia
• IPO
• Infrastructure
• Technology
• India
• Exit
• Multiples Alternative Asset Management
• Madison India Capital
• Aditya Birla Capital Advisors
• Motilal Oswal Private Equity
• Lightspeed Venture Partners
• TMT
• energy