IEX stock in focus after it announces IPO of its subsidiary IGX

Synopsis: IEX in its announcement stated that the company has approved the IPO process for its associate company – IGX, a gas exchange. 

IEX, which provides an automated platform and infrastructure for carrying out trading in electricity units for physical delivery of electricity, was in the news today, as the company has initiated the IPO process for its associate company. Let us see what more the company has planned about the IPO. 

With a market cap of Rs 13,345 crore, the shares of Indian Energy Exchange Ltd are trading at a price of Rs 148; the shares are trading at a PE of 29.2 compared to its industry PE of 64.4. The shares have given a return of 107% over the last 5 years. 

About the IPO. 

IGX’s decision to begin its IPO process is a big moment for India’s energy-market story. As an associate of IEX, the gas exchange has now reached a stage where its business is strong enough to invite public-market scrutiny. Since the IPO will be an offer for sale, existing shareholders will offload part of their stake, which might be signalling maturity rather than a need for fresh capital.

For IEX, this move is more than just a compliance update; it’s a chance to unlock real value in the gas segment. A listed IGX gives clearer price discovery for the business and boosts IEX’s long-term strategic position. It also shows growing confidence in India’s shift toward more transparent, market-driven gas pricing, an area where IGX has been slowly building traction.

The final shape of the IPO, including its size, timing, and structure, will depend on market conditions and regulatory approvals, but one part is finalised, which is its face value of Rs 10 per share. If executed well, it could become a milestone for India’s commodity-trading landscape, opening up the gas market to wider investor participation and giving IGX the visibility it has been working toward.

About IGX. 

The Indian Gas Exchange has emerged as a crucial piece of India’s energy-market transition, acting as the country’s first physical-delivery-based gas trading platform under PNGRB regulations. It brings structure, transparency, and automation to a market that was earlier dominated by long-term contracts.

With six regional gas hubs and multiple delivery points, IGX gives buyers and sellers the flexibility to trade across nine different contract types, which range from intraday to six-month durations, by creating a modern, market-linked system for gas procurement. This depth in contract variety and delivery coverage is what makes IGX a cornerstone for building a transparent gas-pricing ecosystem.

What truly strengthens IGX is the quality and diversity of its participants. The exchange already has more than 45 members and over 200 clients, featuring some of India’s biggest names in gas production, refining, city gas distribution, fertilisers, steel, and glass manufacturing.

From ONGC, Reliance and GAIL to Gujarat Gas, Kajaria, JSW Steel and Saint-Gobain, the ecosystem reflects a broad acceptance of exchange-based gas buying. Such a mix doesn’t just add liquidity but makes the platform a genuine reflection of India’s industrial gas demand, helping establish a more reliable price benchmark.

This growth optimism is supported by the exchange’s performance so far. IGX’s traded volumes have surged from 12.2 mn MMBTU in FY22 to 60 mn MMBTU in FY25, and quarterly volumes show rising liquidity and participation despite cycles in global gas prices.

The trajectory suggests a platform that is no longer experimenting but steadily becoming a mainstream channel for gas procurement. With expanding infrastructure, improving domestic supply, and a growing client base, IGX looks well-positioned to play a significant role in shaping India’s market-driven gas economy.

IGX’s future plans show a platform preparing for a much bigger role in India’s gas market. It’s awaiting approval for balance-of-month gas contracts, which will make buying and selling gas far more flexible.

The new Palanpur delivery point expands its physical reach, while a series of MoUs—with CEGH, HPCL, Crown LNG and PRISMA—signals a push to strengthen LNG trading, hub operations, and overall market transparency.

At the same time, IGX is gearing up for new-age fuel markets: it’s ready to launch CBG certificate trading once the government finalises the rules, and it is actively shaping India’s hydrogen market through partnerships with EEX, GIZ and leading domestic players.

Being chosen by DGH to conduct domestic gas auctions adds even more credibility. Overall, IGX is steadily evolving from a trading platform into a central marketplace for the country’s clean-energy future.

Written by Leon Mendonca. 

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