IEX Share Price Crashes 10% After Regulatory Approval of Power Market Coupling

Market Performance: IEX Share Price Hits Lower Circuit

On Thursday, July 24, IEX share price plunged by 10%, reaching the lower circuit limit on the National Stock Exchange (NSE).

• Opening Price (9:15 AM): ₹169.1
• Change: Down 10% in early trade

The sharp decline came shortly after reports confirmed that India’s electricity regulator gave a green light to market coupling in the Day-Ahead Market (DAM).

Main News: Power Market Coupling Gets Regulatory Nod

The Central Electricity Regulatory Commission has given the green light to implement market coupling in the Day-Ahead Market, signaling a major change in India’s electricity trading framework.

Key Highlights:

• The first phase of coupling is set to go live by January 2026
• Power exchanges will operate under a round-robin Market Coupling Operator (MCO) system
• All buy and sell bids will be aggregated from all exchanges for uniform price discovery

Under the new system, only one market clearing price (MCP) will be determined at any time across platforms, ensuring consistency and transparency in electricity pricing.

Company Details: About Indian Energy Exchange (IEX)

Indian Energy Exchange Ltd (IEX) is one of India’s largest power trading platforms, allowing participants to trade in electricity, renewable energy certificates (RECs) and more.

Recent Stock Performance:

• 1-Year Growth: +7%
• Benchmark Nifty 50: +3.3% during the same period

However, with the approval of market coupling, the company may now function solely as a bid and dispatch platform, alongside other exchanges, rather than independently discovering prices.

Impact of Market Coupling on Power Trading

The government’s move aims to:

• Encourage wider adoption of power exchanges
• Reduce dependency on long-term power purchase agreements (PPAs) which typically span up to 25 years
• Increase transparency and price efficiency across all exchanges

This change is expected to standardize the electricity trading process, though no immediate effect is expected for end users. Over time, it could potentially lead to lower power tariffs for consumers.

Summary of the Article

• IEX share price dropped 10% on July 24, hitting the lower circuit.
• The fall followed CERC’s approval of market coupling in India’s day-ahead power market.
• Market coupling aims to bring uniform price discovery across all Indian power exchanges.
• IEX’s role will shift towards being a bidding and dispatching platform under the new structure.
• The regulatory change is aimed at improving transparency and increasing the share of exchange-based power trading.