Torrent Gas Picks Axis, Kotak & Citi for $450 Million IPO to Fund Expansion, Cut Debt

Tuesday, December 1, 2025: Torrent Gas Ltd. has appointed three banks to manage its planned initial public offering, which could raise up to $450 million, according to people familiar with the development. Torrent Group has appointed Axis Bank Ltd., Kotak Mahindra Capital Co., and the Indian unit of Citigroup Inc. to lead the share sale, who requested anonymity as the details remain confidential.

Application Of Proceeds and Strategic Objectives

The IPO proceeds will be used mainly to spend on capital expenditure and to reduce debts. Torrent Gas is in the process of increasing its network and infrastructure and additional capital will help in consolidating its position in the fast-growing city gas distribution industry. 

Lower leverage will also improve the company’s financial health, enabling it to pursue long-term expansion aligned with India’s rising demand for cleaner and sustainable fuel options.

IPO Timing During a Busy Year of Fundraising

The planned offering comes as near-record fundraising makes India one of the busiest IPO venues globally this year, with energy and infrastructure issuers driving supply. It will test investor appetite for city-gas distributors as companies scale up operations to meet the government’s push for cleaner fuels.

Financial Performance and Market Valuation Prospectus

The planned IPO could value Torrent Gas at around $3 billion, Bloomberg reported in August, citing people familiar with the matter. Torrent Gas reported a revenue of 40.27 billion rupees ($449 million) for the fiscal year that ended March 2025, up from 28.75 billion rupees a year earlier, according to a Crisil Ratings report. This robust growth highlights the growing demand of natural gas in the industrial, commercial and residential markets.

Location And Scope of Operation

Torrent Gas has the mandate to design and run city gas distribution systems in seven Indian states and one union territory. The company provides compressed natural gas (CNG) to automobiles and piped natural gas (PNG) to homes, industries and commercial facilities. The company covers 34 districts, and it has established a notable presence, becoming one of the leading players in the transformation of India towards less polluting energy.

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