Upcoming IPO: Indian Gas Exchange files DRHP with SEBI for IPO

Indian Gas Exchange (IGX) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), paving the way for its proposed initial public offering (IPO).

The IGX IPO will be an offer for sale (OFS) only, with parent Indian Energy Exchange (IEX) planning to offload up to 1.67 crore equity shares. As the public issue does not include a fresh issue of shares, the company will not receive any proceeds from the IPO.

The proposed stake sale is primarily intended to meet regulatory requirements. IEX, which currently owns 47.3% of IGX, plans to reduce its holding to 25%, in line with regulations that cap the ownership of any non-member shareholder in a gas exchange at 25%.

Besides IEX, the exchange's shareholders include GAIL, ONGC, Indian Oil Corporation, Adani Total Gas, Torrent Gas, and NSE Investments.

According to the draft papers, IGX shares are proposed for listing on the BSE. Axis Capital and Motilal Oswal Investment Advisors have been appointed as the book-running lead managers to the issue.

As per reports, earlier this year, IGX Managing Director and CEO Rajesh Kumar Mediratta told PTI that the company had postponed its IPO by a year after obtaining an extension from the regulator. The exchange is now targeting to launch the public issue before December 2026.

Company details

IGX operates an electronic trading platform for natural gas, offering spot, forward and delivery-based contracts. For FY26, the Noida-based company reported a 36.5% year-on-year rise in net profit to ₹42.02 crore, while revenue increased 25% to ₹61 crore.

Beyond its core gas trading business, IGX plans to diversify its offerings by launching a platform for booking regasified liquefied natural gas (R-LNG) capacity, along with introducing a hydrogen price index and a hydrogen trading platform, subject to regulatory approvals.

Longer-tenure contracts currently account for a small portion of the exchange's business. Three-month and six-month contracts contributed less than 5% of total traded volumes in FY26, while monthly contracts accounted for 59% of volumes during the first nine months of FY26. Overall, trading volumes on the exchange grew 46% year-on-year during the April-December 2025 period.

Looking ahead, IGX aims to broaden its contract portfolio by introducing one-year and two-year gas contracts, while expanding its existing medium-term offerings. According to Managing Director and CEO Rajesh Kumar Mediratta, the proposed products will complement the exchange's current suite, which includes day-ahead and term-ahead contracts spanning daily, weekday, weekly, fortnightly and monthly durations, as per reports.

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