Indian Gas Exchange Plans ₹600‑700 Crore IPO by December 2026

Indian Gas Exchange (IGX), the country’s first online, delivery-based trading platform for natural gas, is preparing to launch an initial public offering (IPO) sized at approximately ₹600–700 crore by December 2026, according to the company’s Managing Director and CEO, Rajesh Kumar Mediratta, and regulatory filings.

The public issue will likely involve an offer for sale (OFS) of up to 22% of the company’s equity by existing shareholders, predominantly Indian Energy Exchange (IEX) and other strategic investors. The company is expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) during the second quarter of fiscal 2026.

Valuation and Ownership Structure

As per brokerage firms, IGX is currently valued between ₹2,200 crore and ₹3,000 crore. After the sale of a 22% stake by promoters, the company is expected to raise around ₹600–700 crore based on current market valuations.

Indian Energy Exchange (IEX) currently holds a 47% stake in IGX and is required under existing norms to reduce its holding to 25% by year-end, prompting the OFS component of the IPO.

Other shareholders include large energy and utility firms such as GAIL (India) Ltd, ONGC, Indian Oil, Adani Total Gas, and Torrent Gas, although their precise post-IPO stakes have not been disclosed publicly.

Growth in Trading Activity and Market Position

IGX has reported significant growth in trading volumes:

• Calendar-year volumes grew by 62%, with daily gas traded averaging 5.4 million standard cubic metres per day (mmscmd) on the exchange.

• Despite this growth, the gas traded via IGX accounts for only about 2.75% of India’s total natural gas consumption, which exceeds 190 mmscmd, as per the latest estimates.

The platform offers spot, forward, and delivery-based contracts for natural gas and is targeting a market share increase to 5% by 2029 and 7% by 2030, according to management projections.

India’s Gas Market Trends Driving IGX Expansion

The current trend suggests strong growth in the Indian natural gas market in the coming years. Consumption levels are expected to rise from about 190 mmscmd in 2025 to 297 mmscmd by 2030.

In recent times, fuel prices were volatile, but there were also signs of moderation. For example, gas prices softened from around USD 14 per million British thermal units (mmBtu) in March 2025 to about USD 11 in December 2025. With further moderation expected, gas prices are projected to fall to USD 6–8 per mmBtu during 2026.

As modernisation continues, gas consumption is expected to rise across sectors, particularly in city gas distribution (CGD) networks and the power sector, both of which are key buyers on the IGX platform.

Product Expansion and Regulatory Strategy

Ahead of its IPO, IGX is working on several growth and product development initiatives to boost its business:

• Long-term delivery contracts: The exchange currently offers contracts up to six months and plans to launch one-year and two-year delivery contracts in 2026, subject to regulatory approvals.

• LNG booking: IGX is working on a new platform that will let liquefied natural gas (LNG) sellers book capacity at import and regasification terminals, subject to regulatory approvals.

• New segments: Looking ahead, IGX may branch out into LNG trading and the sale of industrial fuels such as fuel oil, naphtha, aviation turbine fuel, and bitumen. It could also launch a hydrogen price index, tapping into the growing focus on green hydrogen and related markets.

Operational Footprint and Future Targets

IGX has 23 delivery points in India. Of these, 6 are LNG terminals, 3 are pipeline interconnections, and 14 are gas field landfalls. With multiple hubs, not only do buyers and sellers enjoy easy access, but it also helps the company boost liquidity and set transparent prices nationwide.

Insights From Financials

IGX, the natural gas trading arm of Indian Energy Exchange (IEX), shows strong financial performance. As per the latest audited financials for FY 2024‑25, the company reported a total revenue of ₹69.08 crore, up from ₹54.62 crore in FY 2023‑24. Profit after tax for IGX was ₹30.95 crore with earnings per share of approximately ₹4.19 (basic) and ₹4.17 (diluted).

Broader Market Context

IGX’s planned ₹600‑700 crore IPO will add to India’s expanding IPO pipeline in 2026, representing continued interest in infrastructure and energy platforms. It follows other significant public offers in recent months and indicates ongoing investor appetite for asset-light, technology-enabled trading venues.

References:

Business Standard
IGX
(ET)