The stock is also out of the Futures & Options (F&O) Ban, which means that new positions can now be created in the stock.
With Monday’s fall, shares of IEX have given up all that they had gained on Friday. The stock had seen a 9% jump on Friday after a 30% fall on Thursday, which was its biggest on record, after the CERC approved market coupling norms last week.
Brokerage firm Jefferies maintained its “underperform” rating on IEX and cut its price target to ₹105 from ₹150 earlier, projecting a potential downside of 28% from Friday’s close.
Jefferies wrote in its note that implementation of the new market coupling norms from January 2026 will accelerate market share losses for IEX and their estimates say that this figure will fall to 50% by financial year 2028 from over 80% share in financial year 2025.
IEX’s competitor is also targeting a 33% market share, and there is also a third exchange called PXIL, making it headwind for the company that competitors could gain market share.
In the medium-term, IGX cold create some material value for IEX, but it may eventually hold only 25% stake in the Gas exchange.
The brokerage now values IEX at 20 times September 2027 price-to-earnings estimates, which is a 43% discount to its historical average of 35 times, as business dynamics have changed. It expects IEX’s Return on Equity (RoE) to fall to 27% levels from 35% to 40% earlier.
Volumes surprise on the positive side, and competition not gaining market share as envisaged could be some positive triggers for IEX, Jefferies wrote in its note.
Four analysts each have a “hold” and “sell” rating on IEX, while five of them have a “buy” recommendation.
Shares of IEX are trading 7% lower on Monday at ₹135.09.