Indian Gas Exchange Receives Approval for Initial Public Offering
The Indian Gas Exchange Ltd (IGX), which is India’s first online platform for trading natural gas, has received the green light from the Securities and Exchange Board of India (SEBI) to move forward with its initial public offering (IPO).
The IPO is expected to involve an offer for sale of up to 1.67 crore equity shares, all coming from its promoter, the Indian Energy Exchange Ltd (IEX). Notably, this IPO will not see any new shares being issued, meaning IGX will not gain any funds from the offering; instead, the money will go directly to IEX.
IGX initially submitted its IPO paperwork in July. SEBI gave its final approval on October 12, marking a significant step before the company can launch its public offering. This comes at a time when India’s primary market is quite active, with companies raising over Rs 1.1 lakh crore through 96 public issues just this year.
IEX to Reduce Stake
Currently, IEX holds more than 47% of IGX and is mandated to lower its stake to 25% according to regulatory guidelines. The upcoming offer for sale will help IEX meet this requirement while also allowing IGX to achieve the status of a publicly listed company.
IGX believes that going public will enhance its visibility and reputation while establishing a market for its shares. The company, which was established in November 2019 as a wholly-owned subsidiary of IEX, launched its gas trading platform in June 2020. It received regulatory approval to function as a gas exchange in December of the same year.
IGX operates a technology-driven electronic marketplace for natural gas, offering standardized contracts for physical delivery across various delivery points that are directly connected to India’s national gas pipeline system. Unlike several foreign gas exchanges that often settle a large portion of contracts financially, IGX primarily facilitates a physical delivery market. It also provides forward contracts for durations of up to six months.
Revenue Growth
In financial performance, IGX reported a revenue of Rs 61 crore for the fiscal year ending March 2026, marking an increase from Rs 48.8 crore in FY25 and Rs 34.8 crore in FY24.
Earlier this year, IGX’s Managing Director and CEO, Rajesh Kumar Mediratta, expressed the intention to hold the IPO by December 2026. Book-running lead managers for the offering include Axis Capital and Motilal Oswal Investment Advisors, with KFin Technologies serving as the registrar.
