IEX hits 20% upper circuit as company mulls bonus issue

New Delhi: Shares of Indian Energy Exchange (IEX) hit its upper circuit limit on Tuesday amidst a buzz over issue of bonus shares.

"The company board of directors are scheduled to meet on Thursday, October 21, to consider the proposal of bonus issue of equity shares subject to the approval of the shareholders of the company," it said in a regulatory filing.

Following the development, shares of IEX zoomed 20 per cent, its daily circuit limit, to Rs 956.15 on Tuesday, before paring some gains to trade at Rs 921.35 at 9.55 am.

BSE Sensex was trading 421.52 points, or 0.68 per cent, higher at 62,187.11 at the same time. The scrip had settled at Rs 796.80 on Monday.

The company board will consider and approve the unaudited financial results for the quarter and half year ended September 30, 2021 on Thursday.

Shares of Indian Energy Exchange have soared as much as 360 per cent in the last one year, whereas the scrip has surged 55 per cent in the last one month.

IEX is the premier electricity exchange in India, which enjoys a near monopoly status in energy exchange business. It commands a market share of around 95 per cent in the power exchange market.

The company recorded a 59 per cent year-on-year jump in the total traded electricity volumes to 8,997 million units (MU) in September.