Indian Gas Exchange IPO: DRHP Filed, IEX To Sell 16.71 Million Shares - Key Things To Know

Indian Gas Exchange filed its Draft Red Herring Prospectus (DRHP) with Sebi on July 14, 2026. Notably, the public issue will be conducted as a 100 per cent book-built offer and is entirely an Offer for Sale (OFS). Ahead of the IPO, here is a detailed look at the key aspects of the public issue and the company's business that investors should know.

Indian Gas Exchange IPO: Offer Size and Selling Shareholders

The Indian Gas Exchange IPO comprises an offer for sale of up to 16.71 million equity shares of face value of Rs 10 each being offered by the existing promoter. The sole selling shareholder is the promoter, Indian Energy Exchange Limited (IEX). As the issue is entirely an Offer for Sale, the company will not receive any funds from the public issue. The proceeds from the share sale will go entirely to the selling shareholder.

Indian Gas Exchange IPO: Key Financials

Indian Gas Exchange posted a total income of Rs 84.84 crore for the fiscal year ended March 31, 2026, growing nearly 23 per cent from Rs 69.08 crore in fiscal year 2025. The company's profit after tax stood at Rs 42.02 crore, growing by 36 per cent compared to Rs 30.79 crore in the preceding fiscal.

Indian Gas Exchange: Business Model

Indian Gas Exchange operates as an electronic marketplace for trading natural gas through standardised physical delivery-based contracts. The contracts are traded across multiple delivery hubs connected to India's national gas pipeline network. Physical delivery of gas traded on the exchange is facilitated through 19 delivery points across five of the six regional gas hubs in India. The company offers a variety of products, including forward contracts with tenures of up to six months, and spot and forward contracts for truck-delivered small-scale LNG. Transaction fees charged on the trades executed on its platform make up a bulk of the company’s revenue. In Fiscal 2026, the company generated Rs 57.57 crore in transaction fees, accounting for 67.86 per cent of the company's total income. Revenue from treasury income, annual subscription fees, and membership or processing fees also adds to the company’s total income.

Indian Gas Exchange: Competitors

The company currently enjoys a first-mover advantage as it is the only authorised physical delivery-based gas trading exchange in India. However, it competes with bilateral and over-the-counter trading mechanisms, integrated energy companies, gas aggregators, and LNG suppliers.

Indian Gas Exchange IPO: Strengths and Risks?

Here’s a look at some of the key strengths and risks related to the company’s business.

Indian Gas Exchange IPO: Key Risks

• IGX’s business relies on maintaining trading volumes on its gas exchange, and any disruption in the supply of natural gas can potentially disrupt the execution of contracts formed on the exchange.

• The company relies on a limited number of large participants for a significant portion of its revenues, with the top 10 participants accounting for 66.47 per cent of revenue.

• A large portion of domestically produced natural gas is subject to strict allocation guidelines and price ceilings.

Indian Gas Exchange IPO: Key Strengths

• IGX is India's first and only authorised physical delivery-based gas trading exchange, creating a strong first mover advantage.

• The company claims to have a transparent and efficient price discovery, enabled by a scalable technology platform.

• The exchange has multi-contract flexibility and an operating leverage-led business model.

Indian Gas Exchange IPO: Objective

Since the public issue is purely an Offer for Sale, Indian Gas Exchange will not receive any proceeds from the offer. The proceeds will go to the promoter selling shareholder, IEX.