Indian Gas Exchange Secures Sebi’s Nod To Float IPO

New Delhi: Indian Gas Exchange Ltd (IGX), the country’s first online delivery-based trading platform for natural gas, on Monday secured Sebi’s approval to float an initial public offering (IPO), an update with the regulator showed.

The proposed public issue is entirely an offer for sale (OFS) of up to 1.67 crore equity shares by promoter Indian Energy Exchange Ltd (IEX), according to the draft red herring prospectus (DRHP).

As the issue is entirely an OFS, IGX will not receive any proceeds from the IPO. The entire proceeds will go to the selling shareholder, IEX.

The company had filed its preliminary IPO papers in July. After reviewing the draft prospectus, Sebi gave its final observation on October 12.

Sebi’s observations mark an important step in the IPO process, allowing the company to proceed with the preparations for the public issue, subject to applicable regulatory requirements.

The approval comes amid a strong IPO fundraising momentum, with companies raising over Rs 1.1 lakh crore through 96 public issues so far in 2026.

Several more IPOs are lined up for launch this month, signalling continued activity in the primary market.

In the draft papers, IGX stated the primary objective of the IPO is to achieve the benefits of listing its equity shares on the stock exchange, which it expects will enhance its visibility, strengthen brand image and provide a public market for its shares.

Indian Energy Exchange holds over 47 per cent stake in IGX, and as per regulations, it has to bring it down to 25 per cent.

IGX was incorporated in November 2019 as a wholly-owned subsidiary of IEX.

Its electronic gas trading platform was inaugurated in June 2020, and it received authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) to operate as a gas exchange in December 2020.

The company operates a technology-enabled electronic marketplace for trading natural gas through standardised physical delivery-based contracts across multiple delivery hubs connected to India’s national gas pipeline network.

According to the draft papers, unlike several international gas exchanges where a significant share of contracts are financially settled, IGX operates a physical delivery-based market and also offers forward contracts with tenures of up to six months.

For the financial year ended March 2026, the company reported revenue from operations of Rs 61 crore, compared with Rs 48.8 crore in FY25 and Rs 34.8 crore in FY24.

In January, IGX’s Managing Director and CEO Rajesh Kumar Mediratta had stated that the country’s first online delivery-based natural gas trading platform was targeting an IPO by December 2026.

Axis Capital and Motilal Oswal Investment Advisors are the book-running lead managers to the issue, while KFin Technologies is the registrar.

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