IEX Share is up 15% ahead of the record date for bonus share issuance

In Friday’s opening trades, shares of Indian Energy Exchange (IEX) jumped 9% to 264 per share on the BSE, as the stock traded ex-bonus ahead of its record date on Monday. The energy exchange has set the 6th of December as the record date for determining whether stockholders are eligible for bonus equity share issuance.

The company’s board of directors approved a bonus share issuance (2:1) on October 21, 2021, in which owners will get two bonus shares for every one share they own.

The bonus shares will be distributed to “eligible members of the company in the proportion of two new fully paid-up equity shares of rupee one each for each existing fully paid-up equity share of rupee one each held by them, by capitalising a sum not exceeding 59,91,13,022 out of the company’s free reserves and capital redemption reserve as on March 31, 2021,” according to the company.

In late November, the company secured shareholder approval for the issuance of bonus shares. It also gained shareholder approval to raise the authorised share capital and change the capital clause of the memorandum of association as a result.

The Indian Electrical Exchange (IEX) is the country’s leading electricity exchange, facilitating electricity transactions. The power exchange market is dominated by IEX, which has a market share of roughly 95%. The company’s consolidated net profit increased by about 75% to 77 crore in the quarter ended September, while total income increased by 12% to 122 crore from 78.7 crore the year before.