Indian Gas Exchange (IGX) is preparing to enter the public markets with an initial public offering targeted for December 2026. According to Managing Director and CEO Rajesh Kumar Mediratta, the issue is expected to be structured entirely as an offer for sale (OFS), with existing shareholders diluting their stakes rather than the company issuing new shares.
Stake Dilution Plan
As part of the proposed listing, Indian Energy Exchange (IEX), the parent entity, will reduce its shareholding in IGX from 47% to 25%, amounting to a dilution of 22 percentage points. The National Stock Exchange (NSE) is also expected to trim its stake by 1% from its current 26% holding.
Other key shareholders in IGX include GAIL (India) Ltd., Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation, Adani Total Gas, and Torrent Gas. The board of IGX has already approved the IPO proposal, although finer details such as issue size and valuation are yet to be announced.
Broader Product Portfolio in the Pipeline
IGX is working to broaden its product basket by introducing longer-duration gas contracts of one-year and two-year tenures, pending regulatory permissions. Currently, the exchange offers day-ahead contracts and five term-ahead products covering daily, weekday, weekly, fortnightly, and monthly durations, along with three-month and six-month contracts.
Despite the availability of medium-term contracts, three-month and six-month products together contributed less than 5% of total traded volumes so far this financial year. Monthly contracts dominated activity, accounting for around 59% of volumes during the first nine months of FY26. Overall volumes on the platform climbed 46% between April and December 2025.
Upcoming Platforms and Hydrogen Market Initiative
Looking forward, IGX intends to:
- launch a platform for booking regasified LNG (R-LNG) capacity
- introduce a hydrogen index
- offer hydrogen trading services
These initiatives are aimed at positioning the exchange for the evolving clean-energy marketplace.
Gas Price Outlook and Trading Network
Management expects spot natural gas prices to ease to $6–8 per mmBtu by 2030, driven by increased global LNG supply. At present, IGX supports trading across 23 delivery locations, including:
- six LNG terminals
- three pipeline interconnection points
- 14 landfall points for domestic gas fields
These are spread across six regional gas hubs, enabling broad access to buyers and sellers.
Summary
Indian Gas Exchange is planning an IPO by December 2026, structured as an offer for sale by existing shareholders. IEX will cut its stake from 47% to 25%, while NSE will reduce its holding by 1%. The exchange plans to launch longer-tenure gas contracts, expand volumes, and introduce R-LNG booking, a hydrogen index, and hydrogen trading services. Trading volumes rose 46% between April and December 2025, with monthly contracts dominating activity. IGX currently operates across 23 delivery points and expects spot gas prices to soften to $6–8/mmBtu by 2030.
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