Indian Gas Exchange Moves Towards IPO As IEX Plans Stake Sale

Indian Gas Exchange Ltd (IGX) has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India for a proposed initial public offering. The issue will comprise an offer for sale of up to 1.67 crore equity shares by promoter Indian Energy Exchange Ltd.

Since the IPO will consist entirely of an OFS, IGX will not receive any funds raised through the issue. The proceeds will accrue to IEX, which is the selling shareholder.

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IEX currently owns more than 47% of IGX. Under applicable regulations, its holding has to be reduced to 25%, making the proposed stake sale a key part of the company’s listing process.

Listing To Provide Public Market For IGX Shares

In its draft papers, IGX said the proposed listing is intended to provide the company with the benefits of being publicly traded. The company expects the listing to improve its visibility, strengthen its brand and create a public market for its equity shares.

IGX was incorporated in November 2019 as a wholly owned subsidiary of IEX. Its electronic natural gas trading platform began operations in June 2020, followed by authorisation from the Petroleum and Natural Gas Regulatory Board to operate as a gas exchange in December 2020.

IGX Revenue Rises To ₹61 Crore In FY26

IGX operates an electronic marketplace for natural gas contracts that are settled through physical delivery. Its trading hubs are connected to India’s national gas pipeline network.

Unlike several international gas exchanges where many contracts are financially settled, IGX operates a physical delivery-based market and offers forward contracts with tenures of up to six months. The company reported revenue from operations of ₹61 crore for the financial year ended March 2026, compared with ₹48.8 crore in FY25 and ₹34.8 crore in FY24.

The proposed listing also puts the IGX share price and the Indian Energy Exchange share price in focus as investors assess the implications of the planned stake sale and the potential public-market valuation of the gas exchange.

IPO Advisors Appointed

Axis Capital and Motilal Oswal Investment Advisors have been appointed as the book-running lead managers for the issue, while KFin Technologies will act as the registrar.

In January, IGX Managing Director and CEO Rajesh Kumar Mediratta said the company was targeting an IPO by December 2026. The filing of the draft papers marks a formal step towards that proposed listing timeline. The issue size, pricing and final offer structure will be determined through subsequent stages of the IPO process.