Torrent Gas Files Confidential Draft Papers For IPO, Plans Pure OFS Issue

Torrent Gas has submitted draft papers to the Securities and Exchange Board of India (SEBI) through the confidential pre-filing route for its proposed initial public offering, according to industry sources.

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The proposed issue is expected to be entirely an offer for sale (OFS) with no fresh equity issuance, as per information shared by people familiar with the development.

Investment Banks And Listing Structure

Axis Capital, Kotak Mahindra Capital, and Citi have been appointed as investment bankers for the proposed issue, as revealed by the sources quoted in the report.

The confidential filing route enables companies to avoid making disclosures at the initial stage of the IPO and provides flexibility to go ahead with the issue or withdraw from the IPO based on market conditions.
Business Operations And Financials

Torrent Gas operates in the city gas distribution (CGD) segment and is authorised to develop infrastructure and supply compressed natural gas (CNG) and piped natural gas (PNG) across 34 districts in seven states and one union territory, according to company information.

The company reported revenue of ₹45,638.2 crore and a net profit of ₹4,706 crore for FY25, according to data from Tracxn.

Position Within Torrent Group

Torrent Gas is part of the Gujarat-based Torrent Group. If the IPO is completed, it will become the third listed entity from the group after Torrent Pharmaceuticals and Torrent Power.

The company is chaired by Jinal Mehta, and Manoj Jain was appointed as managing director in 2023, according to company disclosures.

Industry Peers And Market Presence

Some of the listed peers operating in the same segment of gas distribution within the city include Indraprastha Gas, Mahanagar Gas, Gujarat Gas, and Adani Total Gas.

Confidential Filing Route Gains Traction

The route of confidential pre-filing was introduced in the country in November 2022 by SEBI for entities seeking a listing on the main board. Under this route, the draft documents are not immediately disclosed. This is in contrast to the conventional draft red herring prospectus route.

Several entities, such as Tata Capital, Tata Play, Oyo, Swiggy, and PhonePe, have opted for the route for filing their IPOs.

This is the first step in the listing journey of Torrent Gas. More information will be revealed in the future when it is publicly disclosed.