GAIL Gas IPO: GAIL board approves plan to divest up to 25% stake; key details investors should know

Integrated natural gas company GAIL (India) Ltd's board on Thursday gave its in-principle approval for the listing of equity shares of the company's wholly owned subsidiary, GAIL Gas, according to a regulatory filing.

Through the proposed initial public offering, GAIL will dilute its stake in GAIL Gas by up to 25%.

"After GGL submits the final proposal based on BRLM recommendations on valuation, price band, modality and other terms & conditions, approval of GAIL Board for the final extent of dilution, modality & other terms & condition of IPO will be obtained. The same will be informed to Stock Exchanges accordingly," the company said in an exchange filing.

GAIL Gas Ltd is a leading city gas distribution company. It was incorporated for the implementation of city gas distribution (CGD) projects and contributing toward a gas-based economy.

Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised the company to implement CGD projects in 16 geographical areas in states like Haryana, Madhya Pradesh, Karnataka, Uttar Pradesh, Uttarakhand, Odisha, Jharkhand and Chhattisgarh.

In addition, the firm is also pursuing city gas business in Rajasthan, Andhra Pradesh, Gujarat, Uttarakhand, Goa, and Assam through its joint ventures.

GAIL Q2 results

Its revenue from operations climbed 32.65% to ₹47,301.03 crore in Q2 FY27, compared to ₹35,657.23 crore in the year-ago period.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) advanced 102.05% to ₹6,992 crore in the reporting quarter up from ₹3,460 crore in the year-ago period. EBITDA margin stood at 14.78% compared to 9.70% in Q2 FY26.