Indian Gas Exchange to launch Rs 600-700 crore IPO by December

Indian Gas Exchange IPO

Indian Gas Exchange, the country's first online delivery-based trading platform for natural gas, is likely to launch an initial public offering (IPO) by December this year, its Managing Director and CEO Rajesh Kumar Mediratta said on Wednesday.

Indian Energy Exchange (IEX) holds a 47 percent stake in IGX, and as per regulations, it has to bring it down to 25 percent.

"The IPO was supposed to happen in 2025, but we have sought a one-year extension. It is now likely before December 2026," Mediratta said.

The papers for the IPO are likely to be filed before the capital market regulator Sebi in the second quarter of 2026 calendar year.

"As much as 22 percent equity shares are likely to be offered in the share sale," he said, but refused to speculate on the valuations.

Brokerages last valued IGX at Rs 2,200-3,000 crore. A slight premium over the valuation would mean that the 22 percent stake sale could be worth Rs 600-700 crore.

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IGX operates an electronic trading platform for natural gas, offering spot, forward and delivery-based contracts.

Last month, IEX had informed the exchanges that its board had approved IGX to start the process of an IPO for shares of Rs 10 face value.

"The IPO will be undertaken by way of an offer for sale by certain existing and eligible shareholders, subject to market conditions, receipt of applicable approvals, regulatory clearances and other considerations," IEX had said in a stock exchange filing.

Mediratta said IGX saw a 62 percent growth in volumes in the calendar year, trading about 5.4 million standard cubic metres per day of gas on the exchange.

The natural gas traded on the platform is about 2.75 percent of the over 190 mmscmd of gas consumed in the country.

The exchange is targeting a share of 5 percent by 2029 and 7 percent by 2030, he said.

Gas consumption in India is projected to rise from 190 mmscmd in 2025 to 297 mmscmd in 2030.

IGX sees softening gas prices – from USD 14 per million British thermal unit in March 2025 to USD 11 in December and further to USD 6-8 per mmBtu this year – propelling consumption in city gas as well as the power sector, which typically buys the fuel on the exchange.

While the exchange currently offers contracts from intraday to 6 months, it is looking to launch one-year and two-year delivery contracts this year, Mediratta said.

It is also looking to launch a platform to provide liquefied natural gas (LNG) sellers with an option to book capacity in import and regasification terminals in the country.

IGX is awaiting regulatory nod for both to start them in 2026, he said.

Besides, it is looking to venture into LNG trading, sale of industrial use petroleum products, such as fuel oil, naphtha, ATF and bitumen and launching a hydrogen index that would indicate the price of green hydrogen and its derivatives.