The Securities and Exchange Board of India (SEBI) has approved Indian Gas Exchange's (IGX) initial public offering, allowing the company to proceed with its IPO plans. According to reports from The Economic Times, the capital markets regulator issued its final observations on the draft offer document on October 12, 2026, enabling IGX to launch its IPO within the next 12 months by filing the red herring prospectus (RHP) with the Registrar of Companies (RoC). The company had filed its draft red herring prospectus (DRHP) with SEBI in July to initiate the IPO process, with SEBI's observations marking an important step in the IPO process that allows the company to proceed with preparations for the public issue subject to applicable regulatory requirements.
The proposed IPO comprises an offer for sale (OFS) of 1.67 crore equity shares by promoter Indian Energy Exchange Ltd (IEX), which holds a 47.28 percent stake in the gas exchange. As reported by The Economic Times, NSE Investments is the largest public shareholder with a 24.75 percent stake, while Oil and Natural Gas Corporation (ONGC), GAIL (India), Torrent Gas, Adani Total Gas, and Indian Oil Corporation each hold a 4.92 percent stake in the company. Since the IPO is entirely an offer for sale, the net proceeds will go to IEX, the selling shareholder, with IGX not receiving any proceeds from the offering. The approval comes amid a strong IPO fundraising momentum, with companies raising over ₹1.1 lakh crore through 96 public issues so far in 2026, signalling continued activity in the primary market.
Incorporated in November 2019 as a wholly-owned subsidiary of IEX, IGX received authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) in December 2020 to operate as an authorised gas exchange. According to the draft prospectus, the company operates 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. Unlike several international gas exchanges where a significant share of contracts are financially settled, IGX operates a physical delivery-based market and also offers forward contracts with tenures of up to six months. The company's electronic gas trading platform was inaugurated in June 2020, and since commencing operations, IGX has recorded significant growth in trading activity, with its cumulative traded volume rising to 76.79 million metric million British thermal units (MMBtu) in FY26, up from 60.02 million MMBtu in the previous financial year.
IGX has demonstrated strong financial performance in recent years, as reported by The Economic Times. The company's revenue from operations increased to ₹61 crore in the financial year ended March 2026, compared with ₹48.8 crore in FY25 and ₹34.8 crore in FY24. Additionally, IGX's profits jumped 36.5% to ₹42 crore in FY26, showing solid growth as the company heads toward its stock market debut. The company's growth trajectory reflects the expanding demand for natural gas trading services in India's energy sector. In January, IGX's Managing Director and CEO Rajesh Kumar Mediratta had stated that the country's first online delivery-based natural gas trading platform was targeting an IPO by December 2026, with the primary objective of achieving benefits of listing that will enhance visibility, strengthen brand image and provide a public market for its shares.
Axis Capital and Motilal Oswal Investment Advisors are serving as the merchant bankers managing the Indian Gas Exchange IPO, with KFin Technologies as the registrar. As per The Economic Times, the primary objective of the IPO is to achieve the benefits of listing its equity shares on the stock exchange, which IGX expects will enhance its visibility, strengthen brand image and provide a public market for its shares. The approval represents a significant milestone for India's first and only authorised physical delivery-based gas trading exchange, positioning it for public listing in the coming months. Notably, Indian Energy Exchange holds over 47% stake in IGX, and as per regulations, it has to bring it down to 25%, creating a regulatory requirement for the IPO structure. The listing is part of the process of reducing IEX's stake to 25%, in line with applicable regulatory requirements, with several more IPOs lined up for launch this month signalling continued momentum in the primary market.
