Synopsis: Indian Gas Exchange is preparing for an IPO of about Rs 600-700 crore by the end of 2026. The majority of this will come from IEX offloading its stake. Gas trading volumes are increasing, new products are being introduced, and the industry appears set for a recovery.
Indian Gas Exchange (IGX) is targeting to go public by the end of 2026, and that’s big news for its main supporter, Indian Energy Exchange (IEX). Previously, brokerages estimated the value of the Indian Gas Exchange to be in the range of Rs 2,200 to 3,000 crore. If the company achieves a higher valuation at the time of listing, selling a 22 percent stake through the IPO would fetch around Rs 600 to 700 crore.
Rajesh Mediratta, IGX’s managing director and CEO, says the IPO will largely involve an OFS by IEX selling around 22 percent of its holding. Currently, IEX owns 47 percent of IGX, but regulations require it to bring that down to 25 percent. NSE, which owns 26 percent, must also offload at least 1 percent during the pre-ipo round. So, the IPO isn’t just about meeting regulatory requirements; it’s more about how IEX will monetize its investment.
About Indian Gas Exchange (IGX) and Expansion Plans
IGX was launched in 2020. It operates a national marketplace for trading natural gas, offering both spot and forward contracts at physical delivery points. The exchange has developed six regional hubs and delivers to over 20 delivery locations. Also, the business is gaining momentum. In 2025, trading volumes soared 62 percent to 7,84,000 metric million British thermal units (mmBtu), highlighting that more participants are getting comfortable trading gas on regulated exchanges, much like what IEX did earlier for electricity.
There’s more in the pipeline. IGX plans to introduce one-year and two-year gas contracts, pending regulatory approval, by which it is expected that it will attract additional participants. Also, IGX accounts for just 2.75 percent of India’s natural gas consumption, of the total 190 mmscmd. However, they have bigger ambitions, and it aims to increase their share to 5 percent by 2029 and further to 7 percent by 2030. They are determined to become a more significant player in India’s gas market.
The exchange is also preparing a platform for booking regasified LNG capacity (process of converting LNG temperature back to natural gas at atmospheric temperature) and exploring trading in compressed biogas, renewable gas certificates, and some petroleum products. Additionally, IGX is developing a hydrogen price index and a future trading platform for green hydrogen, which is expected to be operational by 2027, aligning with India’s push towards clean energy.
Industry Highlights
India’s natural gas consumption slowed down in FY26 after a robust performance in FY25. Between April and November, usage was around 46,239 mmscm, which is a decrease of 6.7 percent compared to the same period last year. However, gas consumption in FY25 actually rose by 6 percent to 71,314 mmscm in FY25.
According to Crisil, the decline in this industry is mainly due to softer demand from the power sector and some seasonal factors. When the monsoon arrived early, people didn’t need as much cooling, which led to lower electricity demand and, in turn, reduced gas usage. Additionally, some refineries and fertilizer plants went in for maintenance, so they weren’t consuming as much gas either.
However, it’s not all negative. City gas distribution, which supplies households, CNG vehicles, and small businesses, has remained largely stable. This segment continues to support overall demand and now makes up about 23 percent of all the gas India uses.
Additionally, ICRA expects natural gas consumption to rebound, growing by 3–4 percent in the next financial year. The main factors behind this are rising industrial demand and the expansion of city gas networks to more locations. Over the long term, natural gas is likely to play a bigger role in India’s energy mix as the country continues to move towards cleaner fuels.
While India’s natural gas consumption dropped in FY26 due to weather and softer demand from the power sector, industry reports predict a rebound, especially from city gas and industrial users. If that materializes, IGX could see much higher activity. For IEX, a successful IPO would do more than satisfy regulations; it could unlock value, improve capital efficiency, and reinforce its leadership in the energy exchange sector. The listing has the potential to be a significant growth driver over the long term.
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