IEX shares fall as retail holding dips for 5 quarters, MFs continue buying

Indian Energy Exchange (IEX) shares have witnessed a steady decline in retail investor interest, with retail shareholding dropping for five consecutive quarters. Despite this trend, mutual funds (MFs) have shown continued confidence in the stock, steadily increasing their stake during the same period.

As per the latest shareholding data for the June 2025 quarter, retail investors now hold just around 8.5% of IEX’s total equity—down from 11.2% a year ago. This sustained exit indicates waning retail sentiment amid price volatility, sectoral shifts, and growing concerns over competition in India’s power exchange space.

Meanwhile, mutual funds have gradually raised their holdings in IEX, now holding 12.4% of the company—up from 9.8% a year ago. Top fund houses like SBI Mutual Fund, Kotak MF, and ICICI Prudential have increased their exposure, suggesting long-term confidence in IEX’s business fundamentals and regulatory resilience.

The stock has fallen over 18% in the past six months, reflecting both sectoral headwinds and the impact of regulatory reforms aimed at opening the power exchange market to greater competition.

Analysts remain divided on the stock’s outlook. Some see the current dip as a buying opportunity, especially given the company’s dominant market share in electricity trading and strong profit margins. Others urge caution, citing risks from new players and evolving policy changes.

Despite short-term uncertainties, institutional backing signals continued trust in IEX’s role as a critical energy infrastructure player in India’s transition toward a more dynamic and digitized power market.