Indian gas exchange’s board approved initiating an IPO; proposed issue to be an OFS by existing shareholders
Indian Gas Exchange (IGX) said its board has cleared a plan to begin the IPO process, with the proposed issue structured as an offer for sale by eligible existing shareholders. IGX IPO decision was taken at a board meeting on 2 December 2025. The company disclosed this through its parent, Indian Energy Exchange (IEX). Key details, including size, timing and valuation, will be finalised after regulatory clearances and market assessment, the filing indicated.
What IGX Said So Far
Indian Energy Exchange (IEX), an associate shareholder in IGX, informed the stock exchanges that the Indian Gas Exchange IPO would involve the sale of equity shares of face value INR 10 each by certain existing holders. Since it is an OFS, the proceeds will accrue to selling shareholders rather than to IGX itself. The company added that the launch remains subject to market conditions and statutory approvals.
Shareholding & Regulatory Backdrop
As of 31 March 2025, IEX held 47.28% in IGX, according to the power bourse’s latest annual report. Separately, industry reports in January noted NSE Investments owned 26%, with state-run and private city gas distributors among other shareholders. The shareholding could evolve closer to listing, depending on regulatory requirements and shareholder decisions.
Under the Petroleum and Natural Gas Regulatory Board (Gas Exchange) Regulations, 2020, ownership in a gas exchange is dispersed, with a cap for non-member shareholders at 25% after five years from authorisation, alongside limits for member-shareholders. The PNGRB framework—last consolidated in March 2024—sets out licensing, governance and settlement norms specific to gas exchanges.
“After five years of authorisation… no person, other than a member, shall hold more than 25% of the paid-up equity,” the regulation states.
Products and Market Context
IGX launched long-duration gas contracts of three months from 3 February 2025 after receiving PNGRB approval, expanding beyond its spot and monthly offerings. The exchange has also aligned price discovery with global benchmarks such as Platts JKM, WIM and Dated Brent through its GIXI index.
“We are awaiting clearance from PNGRB; it is expected to come soon,” IGX MD & CEO Rajesh Mediratta had said earlier this year while discussing longer-tenure products that the bourse has since rolled out.
In October, IGX said its benchmark GIXI averaged INR 973 per MMBtu, down 11% year-on-year amid softer global prices and subdued domestic demand—context that may inform investor appetite and pricing when the offer is readied.
Future Outlook
IGX and its shareholders are expected to file a draft prospectus in due course, following which the capital markets regulator and exchange authorities will review the proposal. Given the OFS structure, the listing would primarily provide liquidity and a price discovery platform for current investors, while strategic and governance changes—if any—will hinge on the final share sale mix and regulatory approvals.
Indian Gas Exchange IPO: Highlights
- Board approved starting the IGX IPO process on 2 Dec 2025.
- Proposed structure: Offer for sale by existing shareholders; face value INR 10.
- IEX stake at IGX: 47.28% as of 31 Mar 2025.
- NSE Investments stake reported at 26% (Jan 2025).
- PNGRB rules cap non-member holdings at 25% after five years.
- Long-duration (3–6 months) contracts live from 3 Feb 2025.
- GIXI averaged INR 973/MMBtu in Oct 2025, down 11% YoY.
Conclusion
The board’s go-ahead moves IGX IPO a step closer to public markets at a time when its contract suite has broadened, and regulatory contours are clearer. The eventual offer size, timing and shareholder mix will depend on approvals and market conditions, but an OFS-led listing would chiefly enable investor exit and price discovery while leaving operating cash flows unchanged.
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