Indian Gas Exchange IPO Gets SEBI Approval; IEX To Sell 1.67 Crore Shares
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Indian Gas Exchange has received SEBI approval to proceed with its IPO. The issue will be entirely an offer for sale of up to 1.67 crore shares by promoter Indian Energy Exchange.
Indian Gas Exchange (IGX) has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering, bringing the Indian Energy Exchange-promoted gas trading platform a step closer to its stock market debut.
SEBI issued its observations on the draft offer document on Monday, October 12. The proposed Indian Gas Exchange IPO will be entirely an offer for sale of up to 1.67 crore equity shares by promoter Indian Energy Exchange (IEX), which currently holds a 47.28% stake in the company. Since there is no fresh issue of shares, IGX will not receive any proceeds from the IPO and the money raised through the offer will go to IEX.
IGX had filed its draft red herring prospectus in July. Following SEBI's observations, the company can move ahead with the IPO process, including filing its red herring prospectus, which will contain details such as the price band and issue dates. These details have not been announced yet.
Indian Gas Exchange IPO To Help IEX Reduce Stake
The IPO will also help IEX reduce its holding in Indian Gas Exchange to comply with regulatory shareholding requirements.
IEX initially held the entire equity capital of IGX and has gradually reduced its stake to 47.28% by bringing in other strategic investors. Under the Gas Exchange Regulations, no single entity can hold more than 25% in a gas exchange beyond the prescribed period.
The Petroleum and Natural Gas Regulatory Board has given IEX an extension until December 31, 2026 to reduce its holding to 25%. IEX's annual report said completion of the proposed IPO would bring its stake in IGX down to the required 25% level.
NSE Investments is currently the largest public shareholder in IGX with a 24.75% stake. ONGC, GAIL (India), Torrent Gas, Adani Total Gas and Indian Oil Corporation each hold 4.92%.
IGX was incorporated in November 2019 and received authorisation from the Petroleum and Natural Gas Regulatory Board in December 2020. It operates a technology-based marketplace for trading natural gas through physical delivery contracts across hubs connected to India's gas pipeline network.
Indian Gas Exchange Financials
Indian Gas Exchange reported a 36.5% increase in profit to ₹42 crore in FY26 from ₹30.8 crore in the previous financial year. Revenue from operations rose 25% to ₹61 crore from ₹48.8 crore during the same period.
Trading activity on the exchange has also increased. Cumulative traded volumes reached 76.79 million MMBtu in FY26, compared with 60.02 million MMBtu in the previous financial year.
If the proposed listing is completed, IGX will become the first gas exchange to be listed on the Indian stock market. Its shares are proposed to be listed on the BSE.
Axis Capital and Motilal Oswal Investment Advisors are the book-running lead managers to the IPO, while KFin Technologies is the registrar. The IPO price band, opening and closing dates and other offer details are yet to be announced.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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