GAIL Gas IPO in FY28; parent to offload 25% stake
The proposed IPO will provide GAIL Gas with a stock market listing while allowing its parent to unlock value through a partial stake sale.
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Updated - October 30, 2026 07:39 pm IST - NEW DELHI
The company is looking to significantly expand its distribution footprint over the next two years. | Photo Credit: By Arranngement
State-owned gas utility Gas Authority of India Ltd (GAIL) has approved, in principle, the listing of its wholly owned subsidiary, GAIL Gas Ltd, through an initial public offering (IPO), with the parent company planning to dilute 25% of its stake in the city gas distributor.
The GAIL board accorded the in-principle approval on Friday, setting the stage for the subsidiary’s stock market debut, which is expected in the next financial year (2027-28).
GAIL Gas currently operates independently in 16 geographical areas, besides having a presence in nine other geographical areas through joint ventures.
Its distribution infrastructure comprises 593 compressed natural gas (CNG) stations and more than 8 lakh domestic piped natural gas (D-PNG) connections.
The company is also looking to significantly expand its distribution footprint over the next two years.
Speaking to investors during an analyst call on Friday, Satish Kumar Sinha, Director (Finance) at GAIL, said GAIL Gas is targeting the addition of 275 CNG stations and around 3.7 lakh new domestic PNG connections during the period.
The subsidiary’s total marketed gas volumes stood at approximately 7 million standard cubic metres per day (MMSCMD) in the first half of the current financial year.
The proposed IPO will provide GAIL Gas with a stock market listing while allowing its parent to unlock value through a partial stake sale.
The 25% equity dilution will also create an opportunity for public investors to participate in the growth of the city gas distribution business.
natural gas / earnings / natural resources / oil and gas - upstream activities / oil and gas - downstream activities / financing and stock offering / financial markets / stock market / company information
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Full detailed coverage is shown on the council website above. Source attribution: The Hindu – Business.
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