Indian Gas Exchange Limited

1Introduction Indian Gas Exchange Limited (IGX) is India's first automated national-level Gas Exchange, established to promote an efficient gas market and foster gas trading across the country. Incorporated in 2019 and operational since June 2020, it functions under the regulatory framework of the PNGRB (govt. Gas regulator). It provides a transparent marketplace for buyers and sellers to trade in spot and forward contracts for natural gas, with key investors including NSE, GAIL, and Adani Gas.

2What Does IGX Do? IGX is like a stock exchange — but for natural gas. Just like how buyers and sellers trade shares on NSE or BSE, IGX is a platform where gas buyers (like city gas companies, fertilizer plants, power companies) and gas sellers (like ONGC, Reliance) come together to buy and sell natural gas. The entire process is transparent, anonymous, and regulated by the government body PNGRB — so no single party can manipulate prices. The platform promotes gas market growth by providing flexibility, counterparty security, and nationwide access without long-term obligations.

3How Does IGX Make Money? IGX charges a small fee on every trade that happens on its platform — similar to how a stock broker charges brokerage: ₹4 per MMBtu for trades where the buyer arranges their own gas pickup (ex-hub) ₹6 per MMBtu for trades where gas is delivered directly to the buyer Special rates for city gas distributors (CGD) to encourage wider adoption Beyond trade fees, IGX also earns from: Membership fees — companies pay ₹15–25 lakh to join, plus ₹5 lakh annually to stay active Client fees — end-users pay ₹1 lakh/year to trade on the platform In FY2025, these revenues added up to ₹69 crore, growing steadily as more gas trades shift to the exchange.

4What Products Does IGX Offer? i) IGX offers flexible gas contracts to suit different buyer needs — from those who need gas just for tomorrow, to those planning a month ahead: Day-Ahead / Daily (1 day), Weekdays (5 Days), Weekly (7 days), Fortnightly (2 weeks), Monthly (Full calendar month). ii) Trades happen at 6+ physical delivery hubs across India — key ones being Dahej, Hazira, and KG Basin (Oduru) — so buyers across the country can access gas near them. iii) IGX also publishes GIXI, India's own natural gas price index, giving the market a reliable domestic price benchmark (similar to what Sensex does for equity markets).

5Why Does This Matter for Investors? IGX sits at the center of India's gas market growth story. As India pushes to increase natural gas's share in its energy mix from ~6.5% today to 15% by 2030, more gas will need to be traded — and IGX is the only regulated exchange to facilitate that. More volume = more transaction fees = higher revenues. It's a simple, scalable, fee-based model with strong regulatory backing.

6How Big Is the Industry Today? India currently consumes roughly 190–297 million standard cubic meters of natural gas per day (mscmd) — making it one of the larger gas markets in Asia. However, natural gas still accounts for only about 6% of India's total energy consumption, which is quite low compared to the global average of ~25%. Within this, IGX's spot trading segment is still small but punching above its weight: IGX traded an average of 5.4 mscmd in 2025 It hit a peak of 8.8 million MMBtu in November 2025 — a massive 181% month-on-month jump This still represents less than 3% of total gas demand — meaning there's a huge runway ahead

7Where Is the Industry Headed? The growth story is compelling: Metric Today By 2030 Gas Demand ~190 mscmd ~297–300 mscmd Gas in Energy Mix ~6% 15% (Govt. Target) IGX's Target Market Share ~3% 7% (~21 mscmd) India's gas demand is expected to grow 60% by 2030, driven by: City Gas Distribution (CGD) expansion — more homes and vehicles running on CNG/PNG Industrial users switching from coal/oil to cleaner gas Power sector increasing gas-based generation For IGX, this means the total addressable market is set to more than double in under 5 years — and as the only regulated gas exchange in the country, it is directly in the path of this growth.

8Who Are the Buyers and Sellers? Sellers (35+ on platform) — these are the companies that produce or import gas and want to sell it: ONGC & Reliance Industries (RIL) — India's largest domestic gas producers GAIL — India's biggest gas transporter and marketer KG Basin HPHT sources — newer deepwater gas fields adding fresh supply Buyers (190+ on platform) — these are companies that need gas to run their businesses: City Gas Distributors (CGDs) like Adani Total Gas and Torrent Gas — supplying CNG to vehicles and PNG to homes Fertilizer plants — using gas as raw material for urea production Power plants and industrial units — using gas as fuel

9Shareholding & Promoter Structure IGX isn't just backed by financial investors — its shareholders are some of India's biggest names in energy and financial markets. This is a strong signal of the company's credibility and strategic importance. Shareholder Stake Why They're Invested Indian Energy Exchange (IEX) ~47% (Promoter) Founded IGX; runs India's largest power exchange National Stock Exchange (NSE) ~26% Strategic bet on exchange infrastructure GAIL ~5% India's largest gas pipeline company ONGC ~5% India's largest gas producer Adani Total Gas ~5% Major city gas distributor & buyer on IGX Torrent Gas ~5% Leading CGD company & active IGX participant Indian Oil (IOCL) ~4.93% Strategic gas market participation

10Recent Developments & Future Outlook i) The biggest news for IGX is its upcoming IPO, which marks a major milestone in the company's journey from a startup exchange to a publicly listed institution. ii) IPO Approved — IGX board gave the green light on December 2, 2025 to initiate the IPO process via an Offer for Sale (OFS) by existing shareholders. iii) IGX plans ₹600–700 crore IPO by Dec 2026 (22% OFS), iv) with SEBI filing in Q2 2026; valued at ₹2,200–3,000 crore. v) IEX to cut stake from 47% t