IEX Share Price Slides 4% Near 52-Week Low on Reports of Transaction Fee Cut

Indian Energy Exchange (NSE: IEX) share price fell nearly 4% on December 26, slipping close to its 52-week low. The stock dropped to around ₹133.45, not far from its yearly low of ₹130.35.

The stock has been under pressure for some time, declining 28% in the last 6 months and about 24% so far this year.

Reason Behind the Fall

The sharp fall came after reports that the Central Electricity Regulatory Commission (CERC) is considering changes to the transaction fees charged by power exchanges.

According to media reports, the regulator may introduce a uniform transaction fee of around 1.5 paise per kilowatt-hour (kWh) per side across most trading segments.

What Is the Current Fee Structure?

At present, power exchanges charge about 2 paise per kWh on both the buying and selling sides, which means a total fee of nearly 4 paise per kWh.

There is also a proposal to lower fees to around 1.25 paise per unit for term-ahead market (TAM) contracts, as these are longer-duration deals.

Additional Concerns for Investors

Apart from fee cuts, investors are also factoring in the expected implementation of market coupling in the medium term. This could further standardise pricing across exchanges, reducing IEX’s pricing power.

IEX Share Price Movement

Indian Energy Exchange share price (IEX) was trading at ₹136.20 on the NSE at 11:45 am on December 26, down 2.11% or ₹2.94 for the day. The stock opened at ₹137.50, touched a high of ₹137.50 and a low of ₹133.29 during the session. The stock’s 52-week high stands at ₹215.40, while the 52-week low is ₹130.26. The company offers a dividend yield of 2.20%, with a quarterly dividend payout of ₹0.75 per share.

Read More: JK Cement Share Price in Focus Raises Stake in O2 Renewable Energy V to Support Long-Term Clean Power Strategy! 

Conclusion

IEX shares fell sharply due to concerns over a possible cut in transaction fees by the regulator. 

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