ICICI Prudential Mutual Fund has increased its stake in Indian Energy Exchange Ltd (IEX), crossing the critical 5 percent regulatory threshold. As per a regulatory filing dated July 25, 2025, the fund acquired 51.43 lakh shares in a secondary market transaction on July 24, raising its holding from 4.64 percent to 5.22 percent. The total number of shares held by the fund now stands at 4.65 crore, up from 4.13 crore earlier.
This move triggered mandatory disclosure under Regulation 29(1) of SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, 2011. The mutual fund clarified that the investment was made purely from a financial perspective and without any intent to acquire control in the company.
Jefferies Cautions on IEX
Despite the increased institutional holding, global brokerage Jefferies maintained its “underperform” rating on IEX, cutting the target price from ₹150 to ₹105, signaling a potential 28 percent downside from the previous close of ₹139.
Jefferies cited concerns surrounding the implementation of market coupling, expected to begin in January 2026, which may significantly reduce IEX’s market dominance. The brokerage estimates that IEX’s market share—currently above 80 percent—may shrink to around 50 percent by FY28, adversely impacting profitability and pricing power.
Q1 Results
IEX posted a 25 percent year-on-year rise in net profit for the June quarter of FY26, reaching ₹120.69 crore, up from ₹96.44 crore in the same period last year. Revenue from operations rose 13.2 percent to ₹139.9 crore, compared to ₹123.5 crore a year ago.
However, the company also reported a sharp 53 percent surge in total expenses, climbing to ₹32 crore in Q1FY26, up from ₹20.9 crore in Q1FY25. This rising cost base may pressure margins in the coming quarters, especially if competitive intensity increases due to policy changes.
Stock Price Trend
While ICICI Prudential MF’s increased holding signals long-term confidence, IEX stock has struggled on the bourses. The stock fell 4.2 percent to close at ₹139 on July 26. Over the past year, the counter has lost 18 percent, with the decline accelerating in recent months—down 28 percent in July alone, after a 3.7 percent dip in June.
Earlier in the year, the stock showed positive momentum, gaining 12.7 percent in March, 8.3 percent in April, and 5.3 percent in May. However, it had a weak start to the year, falling 10.7 percent in February and 4 percent in January.
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