Indian Gas Exchange (IGX), India’s first online delivery-based natural gas trading platform, has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), according to an update on the regulator’s website on Monday, October 12.
The proposed IPO will comprise an offer for sale (OFS) of up to 1.67 crore equity shares by promoter Indian Energy Exchange (IEX), according to the draft red herring prospectus (DRHP). As the issue consists entirely of an OFS, IGX will not receive any proceeds from the offering, with the entire amount going to IEX.
IGX filed its preliminary IPO papers in July, and SEBI issued its final observation on October 12, allowing the company to proceed with the next steps in the listing process, subject to applicable regulatory requirements.
The IPO is aimed at securing the benefits of a stock market listing, including greater visibility, a stronger brand presence and a public market for the company’s shares, the draft papers stated.
IEX holds more than 47% of IGX, and the listing is part of the process of reducing its stake to 25%, in line with applicable regulatory requirements.
IGX’s business and financial performance
Incorporated in November 2019 as a wholly owned subsidiary of IEX, IGX operates an electronic marketplace for trading natural gas through standardised physical delivery-based contracts across multiple delivery hubs connected to India’s national gas pipeline network.
Its trading platform was inaugurated in June 2020, and the company received authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) to operate as a gas exchange in December 2020.
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Unlike several international gas exchanges, where a significant proportion of contracts are financially settled, IGX operates a physical delivery-based market. It also offers forward contracts with tenures of up to six months, according to the DRHP.
For the financial year ended March 2026, IGX reported revenue from operations of ₹61 crore, compared with ₹48.8 crore in the previous financial year and ₹34.8 crore in FY24.
In January, IGX Managing Director and Chief Executive Officer Rajesh Kumar Mediratta said the company was targeting an IPO by December 2026.
Axis Capital and Motilal Oswal Investment Advisors are the book-running lead managers for the issue, while KFin Technologies is the registrar.
IPO market activity
IGX’s Sebi approval comes amid continued activity in India’s primary market. Companies have raised more than ₹1.1 lakh crore through 96 public issues so far in 2026, according to the figures provided. Several more IPOs are scheduled to launch this month.
(With Agency Inputs)