In a move signalling growing investor appetite for India’s energy and infrastructure sector, Torrent Gas, the city gas distribution arm of the Torrent Group, has appointed Citigroup, Axis Bank, and Kotak Mahindra as lead managers for its planned IPO that could raise as much as USD 450 million (~INR 4,000 crore), according to Economic Times.
Strategic Timing Amid India’s IPO Boom
Torrent Gas IPO preparation started at a time when India is witnessing near-record fundraising through the capital markets. According to IPO Central’s data centre, Indian companies have already raised 1,54,317.32 crore via IPOs in 2025, with the tally expected to touch INR 2 lakh crore by year-end. Energy and infrastructure players have been among the most active issuers, reflecting strong institutional demand for businesses aligned with India’s clean energy and infrastructure expansion goals.
Torrent Gas IPO will test investor sentiment toward city-gas distributors, a sector that has gained strategic relevance amid the government’s push for cleaner fuels and the expansion of gas-based urban infrastructure.
Proceeds and Valuation Outlook
The ET report indicates that the USD 450 million share sale proceeds will likely be used to fund capital expenditure and pare debt, strengthening Torrent Gas’s balance sheet as it scales its distribution network.
The company’s FY25 revenue stood at INR 4,027 crore, up sharply from INR 2,875 crore in the prior fiscal year, as per a Crisil Ratings report. This acceleration underscores the growth momentum driven by higher penetration of piped natural gas (PNG) and compressed natural gas (CNG) networks across its licensed areas.
Business Footprint and Growth Trajectory
Torrent Gas entered the city gas distribution (CGD) business in 2018, acquiring assets in Pune and subsequently expanding aggressively through 13 license wins. It currently operates across 34 districts in seven Indian states and one union territory, supplying natural gas to industrial, commercial, and residential consumers.
Crisil Ratings expects the company’s performance to remain strong, citing a healthy revenue outlook and robust operating profitability supported by economies of scale and lower input cost pressures. The company has also benefited from significant financial backing from Torrent Investments, which infused approximately INR 1,600 crore into Torrent Gas as of March 2023.
Torrent Gas IPO: Long-planned listing to unlock value
Torrent Gas’s public listing has been part of the Torrent Group’s long-term strategy. In July 2024, management had indicated plans to go public once the company achieved sufficient operational scale. At that stage, the company was already reporting INR 2,283 crore in revenue and INR 252 crore in EBITDA for the first nine months of FY24.
Torrent Group, which also controls Torrent Power and Torrent Pharmaceuticals, collectively valued at over INR 94,000 crore, has been diversifying into gas distribution as part of its energy transition portfolio. Torrent Gas IPO will also serve to unlock value for the holding company, Torrent Investments, while strengthening the group’s presence in the public markets.
Market Context
Industry observers note that Torrent Gas’s IPO is aligned with India’s broader energy market evolution, where city gas distribution is seen as a vital enabler of the country’s net-zero ambitions. “The company’s expansion footprint and strong group backing make it a credible play in India’s clean energy infrastructure story,” said a Mumbai-based analyst.
With the appointment of Citi, Kotak, and Axis Bank as bookrunners, the IPO process is expected to gain momentum in early 2026, subject to regulatory clearances. Discussions on deal structure, valuation, and pricing are ongoing and may evolve depending on market sentiment.
In summary: Torrent Gas’s upcoming IPO represents a major milestone for the Torrent Group’s energy vertical and reflects the deepening investor interest in India’s transition to natural gas as a bridge fuel. With top-tier investment banks on board and a rapidly expanding footprint, the offering positions Torrent Gas among the most closely watched public issues in the country’s capital markets in 2026.
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