The Indian Gas Exchange (IGX) is charting a course for a significant milestone, with plans to launch its Initial Public Offering (IPO) by the conclusion of 2026. This move will mark a pivotal moment for the country's premier gas trading platform, which commenced operations in 2020.
The IPO Structure and Shareholding Pattern
According to Rajesh Mediratta, the Managing Director and Chief Executive Officer of IGX, the public offering will primarily constitute an Offer for Sale (OFS). The promoter, Indian Energy Exchange Ltd (IEX), is slated to divest a 22% stake through this process. Mediratta clarified that the appointment of merchant bankers for the sale is still pending.
The current shareholding structure of IGX reveals IEX as the largest stakeholder with a 47% holding, followed by the National Stock Exchange (NSE) with 26%. Other notable minority shareholders include major energy players such as GAIL India Ltd, Oil and Natural Gas Corp. (ONGC), IndianOil Ltd, Adani Total Gas Ltd, and Torrent Gas Ltd.
Regulatory requirements mandate IEX to reduce its shareholding in IGX to 25%. Concurrently, NSE is also required to offload a 1% stake, which it may execute either during the IPO or in pre-IPO placement rounds.
Market Context and Expansion Ambitions
The decision to go public comes against a dynamic backdrop in the global and domestic gas markets. Globally, supplies are anticipated to surge in the coming years with new LNG facilities becoming operational in the United States and Qatar. Domestically, despite a noted decline in consumption in the initial months of the current fiscal year (FY26), long-term demand is projected to grow, driven by city gas distribution networks and industrial consumption.
IGX, which operates under the regulatory framework of the Petroleum and Natural Gas Regulatory Board (PNGRB), has witnessed impressive growth. In the calendar year 2025, the volume of gas traded on the platform skyrocketed by 62% to 784,000 metric million British thermal units (mmBtu). The exchange provides a national marketplace for spot and forward gas contracts across six regional hubs encompassing over 20 physical delivery points.
The exchange's expansion blueprint is ambitious. It is currently awaiting regulatory approval to introduce longer-duration contracts of one year and two years, complementing its existing suite of daily, weekly, fortnightly, monthly, and quarterly contracts. Furthermore, IGX is developing a platform for booking Regasified Liquefied Natural Gas (RLNG) capacity.
Diversification into New Energy Products
Looking beyond conventional natural gas, IGX is actively exploring new frontiers. The bourse is investigating the potential for trading compressed biogas (CBG), renewable gas certificates (RGC), and select petroleum products (excluding petrol, diesel, and LPG).
In a forward-looking initiative, IGX is also working on creating a hydrogen index to reflect green hydrogen prices in India. Rajesh Mediratta indicated that this index could become operational in the next financial year (FY27), with a dedicated platform for green hydrogen trading to be developed subsequently.
Demand Dynamics and Future Outlook
Recent data indicates a softening in India's natural gas consumption in FY26. For the period of April to November, consumption stood at approximately 46,239 million standard cubic metres (mmscm), marking a 6.7% decline compared to the same period a year earlier. This follows a robust 6% growth to 71,314 mmscm witnessed in FY25.
Analysts attribute the current fiscal's demand contraction to factors such as lower offtake from the power sector, seasonal volatility in LNG prices, and planned maintenance shutdowns at key refining and fertilizer units. A Crisil report highlighted that an early monsoon reduced cooling demand, impacting gas-based power generation.
However, the city gas distribution (CGD) segment, which constitutes about 23% of total gas consumption, has shown resilience. Credit rating agency ICRA, in a report dated December 31, projected a revival in India's natural gas consumption. It forecast a 3-4% growth in the next fiscal year, fueled by a recovery in industrial demand and the continued expansion of the CGD network, reinforcing natural gas's role in India's energy transition.
The parent company IEX's board had given its formal approval for the public listing last month. IGX's listing plan adds to a sustained pipeline of IPOs in India, following a record year in 2025 where 103 companies raised a staggering ₹1.76 trillion through maiden offerings.
