IEX inks share sale pacts to offload 31 pc equity in IGX

The IEX will sell 26 per cent stake in IGX to NSE Investments Ltd and five per cent equity to Oil and Natural Gas Corporation. ''Indian Energy Exchange Ltd (IEX) has executed two separate share purchase and shareholders agreements, for sale of equity shares held by the company in its subsidiary, namely, Indian Gas Exchange Limited (IGX),'' according to a BSE filing.

It said an agreement has been executed by and between IEX, IGX and NSE Investments Ltd, a wholly owned subsidiary of National Stock Exchange of India Ltd, for sale of 1,92,07,500 equity shares having a face value of Rs 10 each. The cash consideration of the deal is Rs 19.20 crore.

The shares represent a 26 per cent of the IGX's paid-up share capital of Rs 73,87,50,000, consisting of 7,38,75,000 equity shares having a face value of Rs 10 held by the Company in IGX to NSE Investments Ltd, it added.

It also said another agreement has been executed by and between IEX, IGX and Oil and Natural Gas Corporation Ltd (ONGC), for sale of 36,93,750 equity shares, having a face value of Rs 10 each. The cash consideration of the deal is Rs 3.69 crore.

It represents 5 per cent of the IGX's paid-up share capital of Rs 73,87,50,000 consisting of 7,38,75,000 equity shares having a face value of Rs 10, held by the company in IGX to ONGC, according to the filing.

The expected date for completion of the deal is within 10 days from the date of execution of the share purchase and shareholders agreement, it added.

The cash consideration of the deal is Rs 19.20 crore and Rs 3.69 crore respectively.

The IGX is an authorised gas exchange regulated by the Petroleum and Natural Gas Regulatory Board in accordance with the provisions of the Petroleum and Natural Gas Regulatory Board (Gas Exchange) Regulations, 2020. Oil Secretary Tarun Kapoor said, ''The government is committed to build a sustainable energy economy wherein clean energy sources such as gas have a key role to play. We are working collaboratively with key stakeholders in the value chain to create an enabling policy framework that supports development of gas markets in the country.'' He added that the Indian Gas Exchange, working in collaboration with strong leaders from both the public as well as private sector, has a pioneering role in developing a vibrant gas market in the country.

S N Goel, chairman and managing director of IEX and director of IGX, said, ''Having NSE and ONGC as our partners is a natural choice for us in our endeavour to deepen India's gas markets. We are enthused and delighted about the new partnerships.'' National Stock Exchange MD and CEO Vikram Limaye said, ''The government has an unwavering commitment to increase the consumption of gas and build India as a gas-based economy. The collaboration between NSE, IEX and other strong public and private sector leaders to strengthen IGX will go a long way in accelerating the development of the gas markets.'' ONGC Chairman and Managing Director Shashi Shanker said, ''ONGC is aligned to the government's vision of increasing the share of gas in the energy mix, currently at 6 per cent, to 15 per cent by 2030... We are pleased to be part of the Indian Gas Exchange and look forward to developing the gas markets in the country through joint and synchronised efforts in the coming years.'' Earlier this year, IEX announced strategic investments of 5 per cent each by leading players in the gas value chain – Adani Total Gas, Torrent Gas and GAIL (India) Ltd in IGX.