Indian Gas Exchange (IGX) IPO DRHP Filed with SEBI as IEX Plans Stake Sale

Indian Gas Exchange (IGX) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The proposed public issue is entirely an offer for sale (OFS) by its parent company, Indian Energy Exchange (IEX).

Through the IPO, IEX plans to sell up to 1.67 crore shares in IGX. As there is no fresh issue component, IGX will not receive any funds from the offering.

IGX IPO DRHP Filed With SEBI

IGX has initiated the IPO process by submitting its DRHP to SEBI. The public issue will consist solely of an OFS, under which existing shareholder IEX will divest up to 1.67 crore shares.

Since no new shares are being issued, the transaction will not result in any capital inflow for IGX. According to the draft prospectus, the company proposes to list its shares on the BSE following the completion of the offering.

Why Is IEX Reducing Its Stake in IGX?

The proposed stake sale is primarily intended to comply with regulatory requirements governing gas exchanges. IEX currently owns 47.3% of IGX and plans to reduce its holding to 25%.

Regulatory norms permit a maximum ownership of 25% for any shareholder that is not a member of a gas exchange. Following the completion of the OFS, IEX's shareholding is expected to align with these ownership limits.

IGX IPO Timeline and Business Operations

Earlier in 2026, IGX Managing Director and CEO Rajesh Kumar Mediratta stated that the company had deferred its IPO by 1 year after obtaining an extension. The exchange is now expected to launch its public issue before December 2026.

IGX operates an electronic marketplace for natural gas and facilitates spot, forward and delivery-based contracts. The platform currently offers day-ahead contracts along with 5 term-ahead products, including daily, weekday, weekly, fortnightly and monthly contracts.

IGX Trading Volumes and Contract Mix

IGX reported strong growth in trading activity during FY26. Overall trading volumes on the exchange increased by 46% during the April-December 2025 period. Monthly contracts remained the largest segment, accounting for 59% of total traded volumes during the first 9 months of FY26.

In comparison, the three-month and six-month contracts together contributed less than 5% of total traded volumes, highlighting the relatively limited participation in longer-duration products.

Read More: NSE Partners with IGX to Introduce Natural Gas Derivatives.

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Conclusion

IGX's proposed IPO marks an important milestone for the gas trading platform as it seeks a stock market listing on the BSE. The issue is structured entirely as an OFS, enabling IEX to reduce its stake in line with regulatory requirements.

The exchange has recorded growth in trading volumes while continuing to expand its product offerings across the natural gas market. In addition, IGX plans to introduce an R-LNG capacity booking platform, a hydrogen index and a hydrogen trading platform as part of its broader market development initiatives.

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