Indian Gas Exchange Plans ₹600-700 Crore IPO by December 2026
Indian Gas Exchange is preparing for a ₹600-700 crore IPO by December 2026, involving a 22% equity stake sale as confirmed by CEO Rajesh Kumar Mediratta. The company showed strong performance with 62% volume growth, trading 5.40 million standard cubic metres per day and capturing 2.75% of India's gas consumption. IGX plans expansion into longer-term contracts, LNG trading, and industrial petroleum products while targeting 5% market share by 2029.
*this image is generated using AI for illustrative purposes only.
Indian Gas Exchange (IGX), the country's first online delivery-based trading platform for natural gas, is preparing for an initial public offering worth ₹600-700 crores by December 2026. Managing Director and CEO Rajesh Kumar Mediratta confirmed the timeline on Wednesday, representing a strategic shift from the originally planned December 2025 launch.
IPO Structure and Timeline
The public offering will involve a 22% equity stake sale, with papers likely to be filed before capital market regulator SEBI in the second quarter of 2026. Indian Energy Exchange (IEX), which currently holds a 47% stake in IGX, must reduce its holding to 25% as per regulatory requirements.
| Parameter: | Details |
|---|---|
| IPO Size: | ₹600-700 crores |
| Stake Offered: | 22% equity shares |
| Current IEX Holding: | 47% |
| Target IEX Holding: | 25% |
| Filing Timeline: | Q2 2026 |
"The IPO was supposed to happen in 2025, but we have sought a one-year extension. It is now likely before December 2026," Mediratta stated. Brokerages have valued IGX at ₹2,200-3,000 crores, with the IPO expected to price at a slight premium to these valuations. IEX's board has already approved IGX to start the IPO process for shares of ₹10 face value.
Business Performance and Growth
IGX demonstrated strong operational performance with 62% volume growth in the calendar year, trading approximately 5.40 million standard cubic metres per day of natural gas. The platform currently captures 2.75% of India's total gas consumption of over 190 mmscmd.
| Metric: | Current | Target 2029 | Target 2030 |
|---|---|---|---|
| Market Share: | 2.75% | 5.00% | 7.00% |
| Daily Trading Volume: | 5.40 mmscmd | - | - |
| India Gas Consumption: | 190 mmscmd | - | 297 mmscmd |
The exchange operates an electronic trading platform offering spot, forward and delivery-based contracts for natural gas trading.
Future Expansion Plans
The exchange is positioning itself for significant expansion across multiple segments. IGX plans to launch one-year and two-year delivery contracts this year, extending beyond its current offerings from intraday to six-month contracts.
Key expansion initiatives include developing a platform for LNG sellers to book capacity in import and regasification terminals, pending regulatory approval for 2026 launch. The company is also exploring LNG trading, industrial petroleum products sales including fuel oil, naphtha, ATF and bitumen, and launching a hydrogen index for green hydrogen price discovery.
Market Outlook
Mediratta expects softening gas prices to drive consumption growth, with prices projected to decline from USD 14.00 per million British thermal unit in March 2025 to USD 11.00 in December, and further to USD 6.00-8.00 per mmBtu this year. This price environment is expected to boost demand in city gas distribution and power sectors, which are key buyers on the exchange platform.
| Price Timeline: | USD per mmBtu |
|---|---|
| March 2025: | 14.00 |
| December 2025: | 11.00 |
| Target Range: | 6.00-8.00 |
15
