Mumbai: Indian Gas Exchange (IGX) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
The public issue will be a complete offer for sale (OFS). Parent company Indian Energy Exchange (IEX) plans to sell up to 1.67 crore shares. Since there is no fresh issue of shares, IGX will not receive any money from the IPO.
Following the announcement, shares of IEX rose more than 2 percent during Wednesday's trading session.
Stake Sale To Meet Rules
The main purpose of the stake sale is to comply with regulatory requirements.
At present, IEX owns 47.3 percent in IGX. After the IPO, it plans to reduce its holding to 25 percent, which is the highest stake allowed for a shareholder that is not a member of a gas exchange.
According to the DRHP, IGX plans to list its shares on the BSE.
Growth Plans Ahead
Earlier this year, IGX Managing Director and CEO Rajesh Kumar Mediratta had said the company postponed its IPO by one year after receiving an extension. The issue is now expected to hit the market before December 2026.
The company also plans to launch new products after receiving regulatory approvals. These include one-year and two-year gas contracts, along with longer-term contracts of three months and six months.
Currently, IGX offers day-ahead and five term-ahead gas contracts, including daily, weekly, fortnightly and monthly products.
Expanding Beyond Gas Trading
Longer-term contracts still form a small part of IGX's business. The three-month and six-month contracts contributed less than 5 percent of total traded volumes in FY26, while monthly contracts made up 59 percent of volumes during the first nine months of the financial year.
Overall trading volumes grew 46 percent during the April-December 2025 period.
The company also plans to introduce an R-LNG booking platform, a hydrogen index and a hydrogen trading platform.
IGX operates an electronic marketplace for natural gas, enabling spot, forward and delivery-based trading. Its shareholders include GAIL, ONGC, Indian Oil Corporation, Adani Total Gas, Torrent Gas and NSE Investments.
For FY26, IGX reported a 36.5 percent rise in net profit to Rs 42.02 crore, while revenue increased 25 percent to Rs 61 crore. Axis Capital and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO.
