Indian Gas Exchange (IGX), India’s first online delivery-based natural gas trading platform, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The proposed issue will be entirely an Offer for Sale (OFS) of up to 1.67 crore equity shares by its promoter, Indian Energy Exchange (IEX).
Since the IPO is a complete OFS, IGX will not receive any funds from the public issue. Instead, the entire proceeds will go to the selling shareholder, IEX. According to the draft papers, the primary objective of the listing is to enhance IGX’s visibility, strengthen its brand presence and provide a public market for its equity shares.
Currently, IEX holds more than 47% stake in IGX and is required under regulatory norms to reduce its shareholding to 25%, making the IPO an important step toward regulatory compliance.
Established in November 2019 as a wholly owned subsidiary of IEX, IGX launched its electronic gas trading platform in June 2020 and received authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB) to operate as a gas exchange later that year. Today, the platform facilitates transparent, technology-driven trading of natural gas through standardized physical delivery contracts across multiple hubs connected to India’s national gas pipeline network.
Unlike several international gas exchanges that primarily deal in financially settled contracts, IGX focuses on physical delivery-based trading and also offers forward contracts with tenures of up to six months, supporting efficient price discovery and improved market liquidity.
The company has reported steady financial growth over the past three years. Revenue from operations increased to ₹61 crore in FY26, compared with ₹48.8 crore in FY25 and ₹34.8 crore in FY24, reflecting growing participation in India’s natural gas trading market.
Earlier this year, IGX Managing Director and CEO Rajesh Kumar Mediratta had indicated that the company was targeting an IPO by the end of 2026. Axis Capital and Motilal Oswal Investment Advisors have been appointed as the book-running lead managers for the issue, while KFin Technologies will serve as the registrar.
The proposed listing is expected to further strengthen India’s evolving gas trading ecosystem and support the government’s vision of increasing the share of natural gas in the country’s energy mix.
Disclaimer: This report has been editorially prepared using publicly available information. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify important information through official sources.
Author
About the Author
