Dream 11’s Harsh Jain Invests Rs 66 Crore in IEX: A Strategic Move or a Personal Choice?

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Block deal by founder of Dream 11 in IEX confirmed on TV channels

If you are interested in the Indian stock market, you may have heard about the recent block deal by the founder of Dream 11, a popular online fantasy sports platform, in the Indian Energy Exchange (IEX), a leading power trading platform. According to media reports, Harsh Jain, the co-founder and CEO of Dream Sports, which owns Dream 11, bought 5.3 million shares of IEX at an average price of Rs 124.82 per share on June 9, 20231. The deal was worth about Rs 66 crore and was executed through a bulk deal on the National Stock Exchange (NSE).

What is a block deal and why is it important?

A block deal is a trade involving a minimum quantity of 5 lakh shares or a minimum value of Rs 5 crore between two parties on a stock exchange. It is done through a separate window in the morning for 35 minutes and the price of the trade cannot deviate more than 1% from the previous day’s closing or the current market price. Block deals are important because they indicate large transactions by institutional investors, promoters, or high net worth individuals who have access to more information and analysis than retail investors. They also reflect the confidence and interest of the buyers and sellers in the company’s prospects and valuation.

Why did Harsh Jain buy IEX shares?

The exact reason behind Harsh Jain’s purchase of IEX shares is not known, but it could be based on his personal investment strategy or his bullish outlook on the power sector. IEX is India’s largest energy exchange, offering a platform for trading electricity, renewable energy certificates, and green term-ahead market contracts. It has a market share of over 95% in the short-term power market and has been growing steadily in terms of volumes and revenues. IEX also benefits from the government’s policies to promote renewable energy and market-based pricing of power.

What is the impact of the block deal on IEX and Dream 11?

The block deal by Harsh Jain has boosted the sentiment around IEX, as it shows that a successful entrepreneur and investor sees value in the company. The stock price of IEX rose by 10.15% on June 9, 2023, after the deal was reported by TV channels. The deal also reflects positively on Dream 11, as it demonstrates that its founder has enough cash to invest in other businesses and diversify his portfolio. Dream 11 is one of India’s most popular online gaming platforms, with over 100 million users and a valuation of over $2 billion. It is also the title sponsor of the Indian Premier League (IPL), the world’s richest cricket tournament.

Conclusion

The block deal by Harsh Jain in IEX is a significant event in the Indian stock market, as it reveals the investment decision of one of India’s most successful entrepreneurs and online gaming leaders. It also indicates that IEX is an attractive company in the power sector, with strong growth potential and competitive advantage. The deal may inspire other investors to follow suit and invest in IEX or other similar companies.

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