IGX eyes December listing, lines up expansion

The IPO would largely be an offer for sale (OFS) for 22% stake by promoter Indian Energy Exchange Ltd, managing director and chief executive officer (CEO) Rajesh Mediratta told reporters on Wednesday. “The merchant bankers are yet to be appointed for the sale process."

IEX currently holds 47% and NSE owns 26% of IGX, while other minority shareholders include GAIL India Ltd, Oil and Natural Gas Corp. and IndiaOil Ltd, Adani Total Gas Ltd. and Torrent Gas Ltd.

IEX is required to bring down its shareholding to 25%. NSE must also sell 1% stake, which the bourse may offload during the offer or even in the pre-IPO rounds.

The global natural gas market is expected to witness a surge in supplies over the next couple of years, with new LNG facilities coming up in the US and Qatar. Demand for natural gas in India is also expected to grow, driven by demand for city gas distributors and industries, despite a decline in FY26 so far.

The parent IEX’s board had approved the public listing of the shares last month. IGX’s listing plan also reflects a sustained pipeline for IPOs following a record year of maiden issues. In 2025, 103 companies raised ₹1.76 trillion through maiden offerings.

Expansion plans

Launched in 2020, IGX offers a national-level marketplace for trading spot and forward gas contracts at designated physical delivery points. It operates six regional hubs, including over 20 delivery points for gas. It operates under the framework of the Petroleum and Natural Gas Regulatory Board (PNGRB).

In 2025, the volume of gas traded on IGX surged 62% to 784,000 metric million British thermal units (mmBtu).

The CEO stated that the bourse is awaiting approval from the regulator for contracts of one year and two years. Currently, the exchange offers trading in daily, day-ahead, weekly, fortnightly, monthly, three-month and six-month contracts.

It also plans to establish an RLNG (regasified liquefied natural gas) capacity booking platform. It is also exploring the trading of compressed biogas (CBG), renewable gas certificates (RGC), and petroleum products, excluding petrol, diesel, and liquefied petroleum gas (LPG).

“IGX is also working on a hydrogen index, which would reflect prices of green hydrogen in the country. It may be operational in the next financial year (FY27)," Mediratta said, while adding that a platform for green hydrogen trading would also be developed later.

India’s natural gas consumption weakened so far in FY26, after a strong demand in FY25. In April-November, India consumed about 46,239 million standard cubic metres (mmscm) of natural gas, 6.7% lower than a year earlier. The consumption grew 6% to 71,314 mmscm in FY25.

Lower power sector offtake amid seasonal swings in LNG prices and planned maintenance shutdowns at refining and fertilizer units curtailed demand this fiscal, according to a Crisil report. "Gas consumption saw a pronounced decline in summer as an early onset of southwest monsoon reduced demand for cooling. That compares with a rise to 203 mmscmd in the summer of last fiscal amid a policy-driven rise in dispatches of gas-based power plants."

The Crisil report, however, noted that the city gas distribution, which accounts for about 23% of overall gas consumption, has remained resilient.

India's natural gas consumption is expected to revive in the next fiscal and grow 3-4%, following near-term moderation in FY2026, said a 31 December Icra Ltd report. “This rebound will be driven by a recovery in industrial offtake from key sectors and the continued expansion of the City Gas Distribution (CGD) network, positioning natural gas as a focal point in India's evolving energy narrative."