Upcoming IPO: Indian Gas Exchange files draft papers with SEBI for OFS-only issue

India’s first automated national-level natural gas trading platform, Indian Gas Exchange Ltd (IGX), has filed a draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India to launch an initial public offering (IPO).

The proposed initial share sale is solely an offer for sale (OFS) of up to 16,710,000 shares by promoter Indian Energy Exchange Ltd (IEX), according to the preliminary papers filed on Tuesday.

As the issue is completely an OFS, the company will not get any proceeds from the IPO. The funds will go to the selling shareholder, IEX.

"Our company expects that listing of the equity shares will enhance our visibility and brand image as well as provide a public market for the equity shares in India," as per the draft papers.

Indian Energy Exchange holds more than a 47% stake in IGX. As per the regulations, the shareholding needs to come down to 25%.

The company will reserve half of the net offer for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.

Incorporated in 2019, IGX is a wholly owned subsidiary of IEX. Its electronic gas trading platform, which was inaugurated in June 2020, received authorisation from the Petroleum and Natural Gas Regulatory Board to operate as a gas exchange in December 2020.

The company runs 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 DRHP, unlike several international gas exchanges where a major share of contracts are financially settled, IGX operates a physical delivery-based market and also provides forward contracts with tenures of up to six months.

It caters to a broad spectrum of stakeholders across the natural gas value chain, including gas producers, city gas distribution companies, gas marketing companies, power generation companies, fertiliser companies, refineries, LNG terminal operators and industrial consumers.

Indian Gas Exchange posted a revenue from operations of ₹61 crore in the financial year 2025-26, compared with ₹48.8 crore in FY25 and ₹34.8 crore in FY24.

Earlier this year, Rajesh Kumar, the managing director and CEO of IGX, said that the company is targeting a listing by December 2026.

Shares of Indian Gas Exchange will be listed on the NSE and BSE.

Motilal Oswal Investment Advisors and Axis Capital serve as the IPO's book-running lead managers, while KFin Technologies is the registrar.