Indian Gas Exchange IPO

About Indian Gas Exchange IPO

The Indian Gas Exchange IPO, a mainboard IPO, opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

The equity shares offered through the IPO are proposed to be listed on the BSE and the NSE.

Indian Gas Exchange IPO's price band is set at ₹TBA per share. The lot size for an application is TBA. The minimum amount of investment required by a retail investor is ₹TBA (TBA shares) (based on upper price). The offer consists solely of an offer for sale component. Fresh issue is not applicable. The offer for sale portion includes up to 16,710,000 equity shares.

Indian Gas Exchange is India's first and only authorised national level physical delivery-based gas trading exchange, operating under the Petroleum and Natural Gas Regulatory Board (Gas Exchange) Regulations, 2020. It was incorporated in November 2019 as a wholly-owned subsidiary of Indian Energy Exchange Limited, and its trading platform was inaugurated in June 2020.

Objectives of Indian Gas Exchange IPO

This is a 100% Offer for Sale. The Company will not receive any proceeds from the Offer.

• To carry out the offer for sale.
  
• To achieve the benefits of listing the equity shares on the stock exchange.
  

Industry Outlook

Natural gas is central to India's energy transition. India has set a national goal to raise the share of natural gas in its primary energy basket to 15% by 2030, providing a clear demand signal for the sector.

The Total Addressable Market for exchange-based gas trading is expected to grow at a CAGR of approximately 24.7% from Fiscal 2026 to Fiscal 2030, well above the projected growth of approximately 11.7% in overall natural gas consumption over the same period.

This growth is expected to be driven by increasing availability of spot LNG and the anticipated increase or removal of the existing cap that currently permits only up to 10% of domestic production to be traded through gas exchanges.

Global LNG liquefaction capacity reached 713 BCM per year in 2025, easing market tightness. Greater cargo availability supports higher gas consumption.

About Indian Gas Exchange

Indian Gas Exchange runs a fully automated electronic exchange for natural gas. The Company facilitates physical delivery of natural gas through 19 delivery points across India, connected to five regional hubs spanning the Northern, Southern, Eastern, Western, and Central regions. As of March 31, 2026, it offered 10 standardised natural gas contracts and four small-scale LNG contracts. Participants transact across spot contracts such as intraday, day-ahead, and daily, as well as forward contracts with tenures extending up to six months, a range that differentiates the platform from international peers to spot trading.

Its participant base spans the natural gas value chain. This includes gas producers, gas marketing companies, city gas distribution companies, power generation companies, refineries, fertilizer companies, LNG terminal operators, and industrial consumers. The number of registered participants rose to 360 as of March 31, 2026, from 343 a year earlier. Trade volume reached 76.79 million MMBtu in Fiscal 2026, growing at a CAGR of 37.12% between Fiscals 2024 and 2026.

The Company is promoted by Indian Energy Exchange Limited, which held 47.28% of the pre-Offer equity share capital and operates India's largest electricity trading exchange with an 84.30% market share in Fiscal 2026.

Strengths of Indian Gas Exchange

• The Company is India's first and only authorized national level physical delivery-based gas trading exchange, giving it a first-mover advantage.
• A scalable, technology-enabled platform enables transparent and efficient price discovery for natural gas across India.
• Pan-India market reach spans 19 delivery points connected to five regional hubs across the natural gas ecosystem.
• Multi-contract flexibility across 10 standardized gas contracts and four ssLNG contracts drives an operating leverage-led, financially scalable business model.
• The Company operates under a dedicated regulatory framework, with regular policy engagement that strengthens participant trust.
• Strong parentage from Promoter IEX brings domain experience in energy markets and exchange technology, supported by a professional management team.

Risks of Indian Gas Exchange

• Transaction fees are primarily linked to traded volumes, so any inability to maintain or grow trading volumes on the Exchange would directly reduce the Company's revenue.
• The Company depends on a few key participants, with its top 10 participants accounting for 66.47% of revenue from operations in Fiscal 2026, creating concentration risk if they leave.
• The business is governed by the Gas Exchange Regulations and PNGRB oversight, so any failure to comply could result in penalties that harm operations and cash flows.
• Changes to natural gas sector policy, including the current 10% cap on domestic gas traded through exchanges, could materially affect the Company's tradable volumes and revenue.
• The Company depends on access to India's national gas pipeline network and delivery point infrastructure, and any loss of access would disrupt physical delivery and reduce revenue.
• Any significant disruption or failure of the Company's information technology systems or Exchange downtime would halt trading and directly affect its financial condition.

Anchor Investor Bidding Date: TBA

IPO Registrar
KFIN Technologies Limited
Phone: +91 40 6716 2222/ 180 0309 4001
Email: indiangas.ipo@kfintech.com

Book Running Lead Manager
Axis Capital Limited
Motilal Oswal Investment Advisors Limited

Indian Gas Exchange Contact Details
1st Floor, Unit No. 1.14(b), Avanta Business, Centre, Southern Park,
D-2, District Centre, Saket, New Delhi, South Delhi 110 017, Delhi, India
Email: investorrelations@igxindia.com
Tel: +91 012 0698 0100

Indian Gas Exchange Business Model

The company earns its revenue through four streams: transaction fees on trades executed on the Exchange; membership, processing and transfer fees from onboarding participants; annual subscription fees from enrolled participants; and treasury income. Transaction fees, primarily linked to traded volumes, are the largest driver, contributing 67.86% of total income in Fiscal 2026.

The Company serves participants across the natural gas value chain through a fully automated, technology-driven platform, and its physical delivery-based model, with contracts extending to six-month tenures, differentiates it from international exchanges to spot trading.

Indian Gas Exchange Growth Trajectory

Indian Gas Exchange Limited's Total Income for FY26 was ₹84.84 crores, whereas in FY25 and FY24 it was ₹69.08 crores and ₹54.62 crores, respectively.

The Profit After Tax for FY26 was ₹42.02 crores, whereas in FY25 and FY24 it was ₹30.79 crores and ₹23.05 crores, respectively.

Their EBITDA for FY26 was ₹58.61 crores, whereas in FY25 and FY24 it was ₹46.09 crores and ₹33.92 crores, respectively.

Indian Gas Exchange Market Position

The Company's participant base grew to 360 registered participants as of March 31, 2026, drawing gas producers, city gas distribution companies, power generators, refineries, fertilizer companies, and industrial consumers. It is backed by Promoter IEX and strategic shareholders including ONGC, IOCL, GAIL (India) Limited, Adani Total Gas Limited, and NSE Investments Limited.

As of 31 March 2025, the company's Total Income, Profit After Tax, and EBITDA were ₹69.08 crores, ₹30.79 crores, and ₹46.09 crores, respectively.

How to apply for Indian Gas Exchange IPO?

• Step 1: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
  
• Step 2: Specify IPO details. Enter the number of lots and the price you wish to apply for.
  
• Step 3: Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Step 4: Mandate Notification. Your UPI app will receive a mandate notification to block funds.
  
• Step 5: Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.