The National Stock Exchange has offloaded around 1% stake in Indian Gas Exchange (IGX), the country's first online delivery-based trading platform for natural gas, to comply with regulatory requirements. According to reports from PTI and The Economic Times, the stake sale is part of NSE's effort to align with the Petroleum and Natural Gas Regulatory Board (PNGRB) norms, which mandate that no single entity holds more than 25% in the exchange. Following the latest dilution, NSE's shareholding in IGX has come down to 25%, meeting the regulatory limit that followed earlier, stricter proposals. As per The Economic Times, this adherence is essential for IGX's planned initial public offering and shows the exchange's commitment to regulatory standards, with IGX required to make these divestments within five years of authorization. Notably, the exchange had acquired a 26% stake in IGX for over ₹19 crore in March 2021 to become a co-promoter, after securing approvals from PNGRB.
Earlier this month, NSE partnered with IGX to introduce exchange-traded derivatives based on domestic natural gas prices. As part of the collaboration, NSE will launch natural gas futures contracts linked to IGX's benchmark price index -- Gas IndeX of India (GIXI), reflecting pricing based on actual trades on the IGX platform. According to PTI and The Economic Times, this partnership aims to create a clear domestic benchmark, decreasing dependence on fluctuating international prices. These tools are vital for major gas users in sectors like power and fertilizers to manage risks, hedge fuel costs, and ensure stable operations. The combination of IGX's physical market knowledge and NSE's derivatives expertise points to a developing Indian energy market, with IGX co-promoted by NSE since March 2021.
IGX is preparing to launch an initial public offering by December 2026, targeting a valuation of ₹600-700 crore. As reported by PTI and The Economic Times, the offering is intended to raise funds mainly through an offer for sale (OFS) where existing shareholders will sell up to 22% of their equity, including NSE and major backers like Indian Energy Exchange (IEX). Earlier, IEX had informed exchanges that its board had approved the initiation of the IPO process for IGX, involving shares with a face value of ₹10. According to The Economic Times, Managing Director and CEO Rajesh Kumar Mediratta had confirmed that the draft papers are expected to be filed with the capital markets regulator SEBI in the second quarter of calendar year 2026. The IPO will be undertaken by way of an offer for sale by certain existing and eligible shareholders, subject to market conditions, receipt of applicable approvals, regulatory clearances and other considerations.
IGX aims to secure a larger portion of the developing gas trading market, with management forecasting 5% share by 2029 and 7% by 2030. According to PTI and The Economic Times, India's natural gas market is set for substantial growth, with government goals to raise its share in the energy mix to 15% by 2030. While IGX focuses on natural gas, its parent, IEX, leads the power exchange market with an 85-90% share. However, IEX faces questions about its valuation, with some analysts calling it overvalued and setting varied price targets. The IPO's success depends on good market conditions and ongoing regulatory approvals, with competition from other trading platforms and potential entry by energy majors being key risks.
