Indian Gas Exchange Plans ₹600-700 Crore IPO by End-2026, IEX to Offload Stake
Indian Gas Exchange plans a ₹600-700 crore IPO by end-2026, with IEX offloading 22% stake to meet regulatory requirements. IGX showed strong performance with 62% volume growth in 2025 to 7,84,000 mmBtu and aims to expand market share from current 2.75% to 7% by 2030. The company is diversifying into green hydrogen and renewable gas trading while India's natural gas market shows recovery potential.
*this image is generated using AI for illustrative purposes only.
Indian Gas Exchange (IGX) is targeting a public listing by the end of 2026 through an initial public offering valued at approximately ₹600-700 crore. The IPO will primarily consist of an offer for sale (OFS) by Indian Energy Exchange (IEX), which plans to divest around 22% of its stake in the gas trading platform.
Regulatory Compliance Drives IPO Structure
The public offering is largely motivated by regulatory requirements rather than fresh capital raising. IEX currently holds a 47% stake in IGX but must reduce this to 25% to comply with regulations. Similarly, NSE, which owns 26% of IGX, is required to offload at least 1% during the pre-IPO round. Brokerages have previously estimated IGX's valuation in the range of ₹2,200-3,000 crore.
| Stakeholder: | Current Holding | Required Action |
|---|---|---|
| IEX: | 47% | Reduce to 25% |
| NSE: | 26% | Offload minimum 1% |
| IPO Size: | ₹600-700 crore | ~22% stake sale |
Strong Operational Performance and Growth Trajectory
IGX has demonstrated robust business momentum since its launch in 2020. The company operates a national marketplace for natural gas trading, offering both spot and forward contracts across six regional hubs with delivery to over 20 locations. Trading volumes experienced significant growth in 2025, surging 62% to 7,84,000 metric million British thermal units (mmBtu).
Despite this growth, IGX currently accounts for only 2.75% of India's total natural gas consumption of 190 mmscmd. The company has set ambitious targets to expand its market share to 5% by 2029 and further to 7% by 2030.
Product Expansion and Future Initiatives
IGX is actively working to diversify its product offerings and expand market reach. The exchange plans to introduce one-year and two-year gas contracts, pending regulatory approval, which is expected to attract additional market participants. The company is also developing platforms for booking regasified LNG capacity and exploring trading opportunities in compressed biogas, renewable gas certificates, and petroleum products.
In alignment with India's clean energy transition, IGX is developing a hydrogen price index and plans to launch a green hydrogen trading platform by 2027. These initiatives position the company to capitalize on the growing demand for clean energy solutions.
Market Context and Industry Outlook
India's natural gas consumption experienced mixed performance recently. While FY25 saw a 6% increase to 71,314 mmscm, consumption declined 6.7% between April and November in FY26 to 46,239 mmscm. This decline was attributed to softer demand from the power sector due to early monsoon arrival and maintenance activities at refineries and fertilizer plants.
However, the city gas distribution segment, which supplies households, CNG vehicles, and small businesses, remained stable and now represents approximately 23% of India's total gas consumption. Industry analysts expect natural gas consumption to rebound with 3-4% growth projected for the next financial year, driven by rising industrial demand and expansion of city gas networks.
Strategic Implications for IEX
For IEX, the IGX IPO represents more than regulatory compliance—it offers an opportunity to monetize its investment and improve capital efficiency. A successful listing could unlock significant value while reinforcing IEX's leadership position in the energy exchange sector. The transaction aligns with IEX's strategy to develop complementary energy trading platforms and capitalize on India's evolving energy market dynamics.
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