[00:00:02] Part 3 The IPO In the early days of IEX, low average daily
[00:00:12] volumes were a cause of doubt and worry for those at the helm.
[00:00:17] Consequently, the next set of worries were centered around the question, would we be
[00:00:23] able to generate an adequate number of transactions and hence fee to cover our fixed costs?
[00:00:30] That question, however, never became a pain point.
[00:00:35] In the first full year of existence in 2009-10, IEX reported a profit of more than Rs 3.8 crores
[00:00:45] and ever since, IEX has consistently been reporting a profit.
[00:00:52] Apart from the existing strategic investors over the last few years, private equity and
[00:00:59] institutional investors, the likes of Lightspeed, Bessemer, Multiples, TVS Capital, Westbridge,
[00:01:08] Aditya Birla Pee became a part of IEX's journey.
[00:01:13] They all helped the sapling grow to a green shoot and nurtured the green shoot till it
[00:01:19] became a full-grown plant.
[00:01:23] The IPO process for IEX began in early 2017.
[00:01:29] In a short span of time by June, the draft Red Herring Prospectors DRHP has been filed.
[00:01:38] The IPO was slated to be opened for subscription in October.
[00:01:43] The public offer for sale by the selling shareholders of a little over 60.65 lakh
[00:01:51] equity shares of face value Rs 10 each was subscribed nearly 2.3 times by the end of
[00:02:00] the last subscription day.
[00:02:02] On October 23, 2017, IEX listed on Indian stock exchanges making it a publicly owned
[00:02:11] company and India's first listed power exchange with revenues of Rs 2.56 crore in
[00:02:19] FY 2018 and a post-tax profit of INR 132 crore.
[00:02:25] It was valued at INR 5004 crore or USD 770 million that is Rs 1,650 per equity share
[00:02:36] in effect enhancing value for all those who had invested in the company.
[00:02:43] A company at the cusp of market infrastructure and power seldom lists on public markets.
[00:02:51] For IEX, it took less than a decade to graduate from commissioning operations to a stock exchange
[00:02:59] listing.
[00:03:00] Let us hear from the Chief Financial Officer Vinit Harlalka who has shaped the firm's
[00:03:06] financial value creation.
[00:03:10] In public was an important milestone in IEX journey.
[00:03:14] For more reasons than one, on one hand it provided immense value to our investors wherein
[00:03:19] their investments grew multifold.
[00:03:22] At the same time, the IPO helped diversify the company's shareholding mix.
[00:03:26] It reinforced our corporate governance framework and transparency of operations.
[00:03:31] Given the strong performance history of IEX and huge growth potential, the IPO
[00:03:36] was very successful.
[00:03:37] The issue was subscribed 1.88 times.
[00:03:40] We were humbled to receive the best IPO award in the mid-cap category in 2018.
[00:03:45] The response to the IPO underlined the increasing awareness and acceptance of the concept of
[00:03:50] the power exchange among the public at large.
[00:03:54] Listed with a market cap of USD 770 million at the close of the opening day, the Indian
[00:04:02] Energy Exchange in a span of just five years has reached a present market capitalization
[00:04:09] of nearly USD 1.5 billion.
[00:04:13] From a shareholder base of 1.65 lakhs at the time of listing to over 10 times the number
[00:04:19] of shareholders today, IEX has found a place in the imagination of investors.
[00:04:27] And over its listed lifespan, the firm has provided its shareholders with an average
[00:04:33] post-listing dividend yield of nearly 300% and inclusive of corporate actions, an average
[00:04:41] return on investment of nearly 250%.
[00:04:46] Multiple's alternate asset management private limiters Ms. Renuka Ramnath was among the
[00:04:52] very few early ones from the investor community to see the value IEX could create.
[00:04:59] IEX has played a pivotal role in the development of short-term power markets in India, which
[00:05:06] are critical for balancing load and for transparent price discovery.
[00:05:12] Through its significant investments in technology and customer education, IEX could sign up
[00:05:18] most key buyers and sellers thereby creating depth and liquidity.
[00:05:24] The management and the team at IEX had tremendous experience and are able to work collaboratively
[00:05:31] with the ecosystem to bring innovative products and solutions.
[00:05:36] IEX has a very special place in my heart.
[00:05:39] It was during our investment that the company crafted itself into its current avatar and
[00:05:45] I'm very delighted to see its continuing progress and success.
[00:05:50] In this special location of IEX 15th anniversary, I congratulate team IEX and wish them lots
[00:05:58] of success in their endeavors to expand and deepen energy markets in India.
[00:06:06] Since its early inception days, business at IEX has been driven on the bedrock of
[00:06:12] strong ethics and sound corporate governance.
[00:06:17] The firm's corporate governance philosophy was formed early on from the belief that sound
[00:06:23] governance practices are necessary for creating shareholder value and enhancing the confidence
[00:06:29] of all stakeholders.
[00:06:32] These corporate governance principles consist mainly of transparency, equity, integrity,
[00:06:39] accountability and social duty that conform to all the applicable laws, rules and regulations
[00:06:47] of the land.
[00:06:49] Of late, sustainable practices have become an integral part of the business proposition
[00:06:55] of any organization.
[00:06:58] Mr. Vinith Harlalka elaborates on IEX's corporate governance principles.
[00:07:05] Social leadership and sound corporate governance practices are cornerstone of our business
[00:07:09] and strategy to drive sustained growth.
[00:07:13] At IEX, sustainability is about effectively managing the triple bottom line that means
[00:07:18] the financials, social and environmental.
[00:07:21] While focusing on business continuity, we are committed to pursuing our economic growth
[00:07:25] while concurrently watching our ecological footprint and increasing our positive social
[00:07:30] impact.
[00:07:31] With socially responsible organization, ESG operates as a backbone of every strategy
[00:07:37] firm nations at IEX.
[00:07:38] We are committed to support and promote inclusive and sustainable growth of the nation and
[00:07:43] consistently aim to positively impact the community that we are part of.
[00:07:47] Our CSR interventions have touched the life of thousands of children, youth and
[00:07:52] marginalized section in various ways.