On June 12, after falling 18% in the past two sessions straight, Indian Energy Exchange (IEX) shares rose 1%, and investors bought the stock. UBS has a ‘buy’ rating with a target price of Rs 200, up 58% from today’s high.

At 09:41 am, IEX was trading at Rs 124.35, up 1.43%.

UBS recommends executing market coupling in inter-regional transmission or green energy may recover the supervision of transmission capabilities.

With the simple market link, the existing structure will be the same, which would impact power exchange acts, the brokerage firm said. However, UBS remains aware of the risk and will linger to track this closely.

Antique Stock Broking downgraded its rating to ‘sell’ with a target price of Rs 105 in the last week.

The possibility of a coupling operator can clear the power flow within each zone, giving new challenges for leading exchanges like IEX, Antique Stock Broking said. Also, incentives by competitor exchanges like HPX and PXIL can result in volume growth. Thus, the firm cut rating on the power exchange stock.

Now, India operates three power exchanges, viz. IEX, HPX, and Power Exchange India Limited (PXIL). HPX is a power exchange in the Indian electricity market sponsored by PTC India, BSE and ICICI Bank.

Even IEX has articulated apprehension over the consultation need on market coupling in spot power trading.

The company’s net profit was Rs 53.01 crore in March 2023, up 151.87% from Rs 21.05 crore in March 2022. Revenue resulted at Rs 974.22 crore, up 132.56% from Rs 418.90 crore in March 2022.