Hindustan Power Exchange Limited
1 MAbout Hindustan Power Exchange Limited
A Comprehensive Overview of Price & Journey
Understanding Hindustan Power Exchange Limited Inception and Growth
Hindustan Power Exchange Limited is an unlisted company trading in the private market. Unlike listed companies, the valuation and share price of unlisted or Pre-IPO companies are determined via negotiation and demand & supply. Hindustan Power Exchange Limited unlisted share.
Investors looking for diversification of their portfolio should carefully analyze the Hindustan power exchange Unlisted Share Price, valuation, and research report for the latest year. This is the comprehensive coverage of Hindustan Power Exchange Limited's unlisted shares that answers simple questions of investors, such as how to buy unlisted/pre-IPO shares of Hindustan power Exchange, what Hindustan Power Exchange Limited does, and How Hindustan Power Exchange Limited has performed in recent years.
Overview
Hindustan Power Exchange Limited is a leading electricity trading platform that facilitates the buying and selling of electricity and related products. Headquartered in Noida, Uttar Pradesh, the company was incorporated on 24 April 2018 but started their operation in July 2022. The company is promoted by PTC India, BSE Investments, and ICICI Bank. HPX provides a marketplace for power generators, distribution companies, and industrial consumers. The company facilitates trading in multiple types of trading, such as DAM & GDAM, RTM, TAM & GTAM, contingency contracts, and renewable energy certificates. HPXL is licensed and regulated by CERC (Central Electricity Regulatory Commission). The electricity market is estimated to be around 238 billion units of electricity annually; HPX reported an annual cleared volume of about 108-121 BU and sees increased participant onboarding.
How the Company Makes Money
2A – Operational Model
HPXL is a marketplace where electricity becomes the tradable commodity. It bridges the gap between commercial trading and power grids. It provides a market for buyers and sellers by matching demand and supply. The operational model works as follows:
Bidding
Buyers and sellers log into the platform, and places close, anonymous bids specifying the Hindustan power exchange Unlisted Share Price and quantity (MW) of electricity available and required. On the same day, automated risk engines run in the background to ensure availability of sufficient margin in the buyer’s bank account.
- Price Discovery: Once the bidding window closes, the advanced optimization algorithm runs in the background to gather all buy and sell side bids, frames the graph, and determines the Market Clearing Price (MCP) and Market Clearing Volume (MCV) at the intersection of these two curves.
- Congestion Management: At this stage, the exchange submits provisional cleared volumes with the National Open Access Regulatory (NOAR) to check if the transmission lines have enough capacity. If the carrying corridor is overloaded, the engine triggers market splitting—it then divides the grid as per geographical zones.
- Dispatch Scheduling: Now, the finalized trade file is sent to GRID INDIA, and it is the duty of dispatch centers to cross-verify it with grid safety parameters and issue a final dispatch schedule.
- Execution: Now in the final execution stage, physical delivery of electricity is facilitated through the national grid. On the payment settlement side, the buyer's bank account is automatically debited, and the transaction is settled.
2B. Revenue Model
Hindustan Power Exchange (HPX) follows a diversified revenue model, with transaction fees serving as its primary source of income. Around 75%–85% of the company's revenue comes from fees charged on electricity traded through its platform. Every successful trade across different market segments generates a transaction fee, making this the largest contributor to HPX's overall earnings.
Another key revenue source is interest earned on advance cash margins, which contributes approximately 10%–15% of total revenue. Before participating in electricity trading, buyers are required to deposit funds as a security margin. HPX invests these deposits in safe and highly liquid financial instruments, allowing the company to earn a steady stream of interest income while ensuring secure market operations.
HPX generates recurring income through membership fees, which account for around 5%–10% of its revenue. Power traders, distribution companies (DISCOMs), power generators, and large industrial consumers pay a one-time registration fee to join the exchange, followed by annual membership and processing charges. This recurring fee structure helps strengthen the company's long-term revenue while supporting the growth of its participant base.
Competitive Landscape
The Indian market has three Power Exchange players that are licensed by CERC—Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL), and Hindustan Power Exchange (HPX). Among the three, HPX is the newest entrant—incorporated in 2022.
-
Indian Energy Exchange (IEX)
IEX is the dominant player in the Indian power market, capturing around 85% - 90% of market share. The exchange was launched in 2008. The exchange is publicly listed and has diverse participants across retail and institutional categories. IEX dominates the Day-Ahead Market (DAM) and Real-Time Market (RTM), holding approximately 90% of market share.
Competitive Edge: Since the exchange is publicly listed, it has a vast network of market participants. DISCOMs automatically default to IEX due to liquidity and surety getting their bids cleared.
-
Power Exchange India Limited
Launched in 2008, PXIL is a premier power exchange. Promoted by NSE & NCDEX; PXIL holds 5%-7% of market share. However, incorporated alongside IEX, growth of PXIL was stunted due to lack of liquidity that scares traders away. Capturing the first-mover advantage, IEX got itself listed and captured almost entire market. However, PXIL is still outperforming in the Term-Ahead Market (TAM), Renewable Energy Certificate (REC), and ESCerts.
Key Managerial Persons
- Harish Saran: Managing Director
- Niraj Nabh Kumar: Director
- Deepak Goel: Nominee Director
- Vishnu Kant: Nominee Director
Funding & Valuation
Year
Transaction Type
Estimated Amount
Key Investors
2018–2021
Initial Consortium Seed Capital
₹55.25 Crore
(Initial Paid-up Capital)
PTC India Ltd, BSE Investments Ltd, ICICI Bank
2022
Pre-Operational Strategic Allocation
Undisclosed
(Strategic Stakes)
Greenko, Manikaran Power, and power trading entities
December 2023
Strategic Equity Infusion
₹14.25 Crore
(₹142.5 Million)
REC Limited (State-backed Infrastructure Finance PSU)
SHOW MORE...
Hindustan Power Exchange Limited is an unlisted company trading in the private market. Unlike listed companies, the valuation and share price of unlisted or Pre-IPO companies are determined via negotiation and demand & supply. Hindustan Power Exchange Limited unlisted share.
Investors looking for diversification of their portfolio should carefully analyze the Hindustan power exchange Unlisted Share Price, valuation, and research report for the latest year. This is the comprehensive coverage of Hindustan Power Exchange Limited's unlisted shares that answers simple questions of investors, such as how to buy unlisted/pre-IPO shares of Hindustan power Exchange, what Hindustan Power Exchange Limited does, and How Hindustan Power Exchange Limited has performed in recent years.
Overview
Hindustan Power Exchange Limited is a leading electricity trading platform that facilitates the buying and selling of electricity and related products. Headquartered in Noida, Uttar Pradesh, the company was incorporated on 24 April 2018 but started their operation in July 2022. The company is promoted by PTC India, BSE Investments, and ICICI Bank. HPX provides a marketplace for power generators, distribution companies, and industrial consumers. The company facilitates trading in multiple types of trading, such as DAM & GDAM, RTM, TAM & GTAM, contingency contracts, and renewable energy certificates. HPXL is licensed and regulated by CERC (Central Electricity Regulatory Commission). The electricity market is estimated to be around 238 billion units of electricity annually; HPX reported an annual cleared volume of about 108-121 BU and sees increased participant onboarding.
How the Company Makes Money
2A – Operational Model
HPXL is a marketplace where electricity becomes the tradable commodity. It bridges the gap between commercial trading and power grids. It provides a market for buyers and sellers by matching demand and supply. The operational model works as follows:
Bidding
Buyers and sellers log into the platform, and places close, anonymous bids specifying the Hindustan power exchange Unlisted Share Price and quantity (MW) of electricity available and required. On the same day, automated risk engines run in the background to ensure availability of sufficient margin in the buyer’s bank account.
- Price Discovery: Once the bidding window closes, the advanced optimization algorithm runs in the background to gather all buy and sell side bids, frames the graph, and determines the Market Clearing Price (MCP) and Market Clearing Volume (MCV) at the intersection of these two curves.
- Congestion Management: At this stage, the exchange submits provisional cleared volumes with the National Open Access Regulatory (NOAR) to check if the transmission lines have enough capacity. If the carrying corridor is overloaded, the engine triggers market splitting—it then divides the grid as per geographical zones.
- Dispatch Scheduling: Now, the finalized trade file is sent to GRID INDIA, and it is the duty of dispatch centers to cross-verify it with grid safety parameters and issue a final dispatch schedule.
- Execution: Now in the final execution stage, physical delivery of electricity is facilitated through the national grid. On the payment settlement side, the buyer's bank account is automatically debited, and the transaction is settled.
2B. Revenue Model
Hindustan Power Exchange (HPX) follows a diversified revenue model, with transaction fees serving as its primary source of income. Around 75%–85% of the company's revenue comes from fees charged on electricity traded through its platform. Every successful trade across different market segments generates a transaction fee, making this the largest contributor to HPX's overall earnings.
Another key revenue source is interest earned on advance cash margins, which contributes approximately 10%–15% of total revenue. Before participating in electricity trading, buyers are required to deposit funds as a security margin. HPX invests these deposits in safe and highly liquid financial instruments, allowing the company to earn a steady stream of interest income while ensuring secure market operations.
HPX generates recurring income through membership fees, which account for around 5%–10% of its revenue. Power traders, distribution companies (DISCOMs), power generators, and large industrial consumers pay a one-time registration fee to join the exchange, followed by annual membership and processing charges. This recurring fee structure helps strengthen the company's long-term revenue while supporting the growth of its participant base.
Competitive Landscape
The Indian market has three Power Exchange players that are licensed by CERC—Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL), and Hindustan Power Exchange (HPX). Among the three, HPX is the newest entrant—incorporated in 2022.
-
Indian Energy Exchange (IEX)
IEX is the dominant player in the Indian power market, capturing around 85% - 90% of market share. The exchange was launched in 2008. The exchange is publicly listed and has diverse participants across retail and institutional categories. IEX dominates the Day-Ahead Market (DAM) and Real-Time Market (RTM), holding approximately 90% of market share.
Competitive Edge: Since the exchange is publicly listed, it has a vast network of market participants. DISCOMs automatically default to IEX due to liquidity and surety getting their bids cleared.
-
Power Exchange India Limited
Launched in 2008, PXIL is a premier power exchange. Promoted by NSE & NCDEX; PXIL holds 5%-7% of market share. However, incorporated alongside IEX, growth of PXIL was stunted due to lack of liquidity that scares traders away. Capturing the first-mover advantage, IEX got itself listed and captured almost entire market. However, PXIL is still outperforming in the Term-Ahead Market (TAM), Renewable Energy Certificate (REC), and ESCerts.
Key Managerial Persons
- Harish Saran: Managing Director
- Niraj Nabh Kumar: Director
- Deepak Goel: Nominee Director
- Vishnu Kant: Nominee Director
Funding & Valuation
|
Year |
Transaction Type |
Estimated Amount |
Key Investors |
|---|---|---|---|
|
2018–2021 |
Initial Consortium Seed Capital |
₹55.25 Crore
(Initial Paid-up Capital) |
PTC India Ltd, BSE Investments Ltd, ICICI Bank |
|
2022 |
Pre-Operational Strategic Allocation |
Undisclosed
(Strategic Stakes) |
Greenko, Manikaran Power, and power trading entities |
|
December 2023 |
Strategic Equity Infusion |
₹14.25 Crore
(₹142.5 Million) |
REC Limited (State-backed Infrastructure Finance PSU) |
Fundamentals
Financials
All values are INR Cr except per share value
Revenue Growth
PAT Growth %
EPS Growth %
TOTAL ASSETS Growth %
QUICK RATIO Growth %
LONG TERM DEBT TO EQUITY RATIO Growth %
Shareholding Pattern
2026
| Name | Designation | Share % |
|---|---|---|
| PTC India Limited | Promoter | 22.62% |
| BSE Investments Limited | Promoter | 22.62% |
| ICICI Bank Limited | Promoter | 9.04% |
| Public & Others | Investor | 45.72% |
Events
| Name | Date | Details |
|---|---|---|
| No events available. | ||
Frequently Asked Questions
Like any other financial product or commodity, the price of unlisted shares is discovered at the intersection of demand from buyers and supply from sellers of particular unlisted shares.
The two determinants of price are dynamic factors and keep changing constantly, hence share price tends to fluctuate constantly – every day, every minute.
Upon successful completion of a deal, the unlisted shares are credited electronically directly to your standard demat account that is usually created with CDSL or NSDL (Central Depository Services Limited or National Securities Depository Limited).
The lock-in period of Hindustan Power Exchange Limited varies depending on the category of the investor:
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Venture capital or foreign venture capital investors are subject to lock-in period of 6 months from the date of acquisition of shares
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For AIF investors of Category-II are not subject to any lock-in.
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Any other investor, including retail investors, HNI or corporate investors are subject to a lock-in period of 6 months from the date of listing.
Note – The above-mentioned lock-in is for mainboard, however for SME IPO the applicable lock-in period is 1 Year.
There is no regulatory minimum limit to invest in unlisted shares. However, minimum investment size varies with the per share price. Earlier, the typical investment size often ranges between 70K – 100K, but with the growing awareness and increased participation the investment size has been down sized to 50k.
Short-Term Capital Gain tax is applicable when you sell your unlisted shares within a year from date of acquisition. Realized gain is taxable at your slab rate after consolidating in total income for the year. Hence, the rate of tax depends on your overall income for the particular financial year.
Long-Term Capital Gain taxes are applicable when you sell your unlisted shares after two years from the date of acquisition. LTCG tax is calculated on profits realized on sale of unlisted shares at 12.5%. Investors particularly retail or HNI must understand the concept clearly as it impacts strategy and tax planning.
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You can download the NSDL or CDSL application and login into the account and check whether the shares have been credited or not.
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Credit of Unlisted Shares/Pre-IPO shares can be checked in brokers application as well but it takes T+2 days to show the shares.
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You would also get email confirmation of credit of shares via email.
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The value of share in unlisted space is determined in the same way as it is done in the listed market. Demand and supply decide the price of any share. If the demand is more than the supply, then the price of the share increases and vice versa.
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When a new share is introduced in the unlisted space, the value of the company is decided upon the last funding raised by the company. If the company hasn’t raised any funding in the past, then the valuation is decided upon the fundamentals of the company.
Yes, investing in unlisted shares is legal in India, the activity is regulated and governed under the rules and guidelines laid by SEBI (Securities and Exchange Board of India). Related parties must comply with the regulations and guidelines to ensure legal and financial standards.
Yes, investing in unlisted shares is legal in India, the activity is regulated and governed under the rules and guidelines laid by SEBI (Securities and Exchange Board of India). Related parties must comply with the regulations and guidelines to ensure legal and financial standards.
Investing in unlisted shares in India carries a significant and distinctive risk profile such as limited liquidity, lack of transparent pricing and regulatory oversight because unlisted shares do not trade on listed stock exchange, they are bought or sold in OTC (over the counter) market that makes vulnerable to following risks:
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Liquidity risk, unlisted shares are difficult to buy and sell,
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Lack of transparent pricing, as share price of pre-IPO or unl;isted company is often determined by narrative not fundamentals
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Lack of information disclosure, unlisted companies are not mandated for disclosures like listed companies
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Tax ambiguity, because determination of fair market value and cost of acquisition of unlisted shares is often disputed
Hence, investors should carefully examine related facts before investing in Pre-IPO or unlisted shares.