Gas Exchange IGX to float IPO by 2025: Rajesh Mediratta

Rajesh Kumar Mediratta, Managing Director & CEO.

India’s first gas exchange, Indian Gas Exchange (IGX) has decided to defer its plan to launch an initial public offering (IPO), said Rajesh Kumar Mediratta, Managing Director & CEO.

Mediratta said the company will plan the IPO by 2025 once Indian Energy Exchange (IEX)—the parent company of IGX—has brought down its equity to 25 percent.

“IEX is holding more than 25 percent [equity], and they will bring it down to 25 percent in the fifth year. So, we are not planning for the IPO,” said Mediratta.

IGX started operating as the Gas Exchange since December 10, 2020.

He added that it is a gas exchange regulatory requirement that all the stakeholders’ equity is less than 25 percent before an IPO.

Earlier in the year, it was reported in the media that Satyanarayan Goel, the Non-Executive Director of IGX, had said the exchange is planning to launch an IPO.

Key investors of the exchange promoted by IEX and National Stock Exchange (NSE) include GAIL (India) Ltd, ONGC Ltd, Indian Oil Corporation Ltd (IOC), Adani Total Gas Ltd and Torrent Gas Pvt Ltd.

State-run IOC acquired 4.93 percent stake in IGX from the latter’s promoter IEX on January 19. All the other investors had acquired 5 percent stake each in the exchange.

IGX traded 14,91,700 MMBtu gas volume in September, registering 414 per cent year-on-year growth, compared to 2,90,000 MMBtu traded in last year, the exchange said in a press release.

New products to be launched

Mediratta said the exchange is planning to launch new products in the market such as small-scale energy and expects its launch either this quarter or the next.

Small-scale energy is the generation of energy on a smaller scale as an alternative to traditional methods.

He added that though IGX cannot provide spot market forecast, it is working closely with the NSE on creating futures of derivative forecasts. The futures would be very helpful in hedging for the long term, said Mediratta.

IGX is also planning to launch other products including gas futures, capacity trading and cross-border gas trade.

IGX offers six delivery-based contracts for trading in gas including day ahead, daily, weekday, weekly, fortnightly and monthly through five designated physical hubs located in Dahej, Hazira, Dabhol, Jaigarh and KG Basin.​