NSE to buy 26% stake in Indian Gas Exchange

Our Bureau Mumbai | Updated on February 11, 2021 Published on February 11, 2021

The National Stock Exchange (NSE) is likely to pick up a 26 per cent stake in the newly launched Indian Gas Exchange (IGX), an arm of the Indian Energy Exchange (IEX), sources familiar with the matter told BusinessLine. The platform that will promote trading in natural was launched in June 2020 and started its operations in December.

The share price of IEX rose by 11.23 per cent or ₹30.35 to close at ₹300.7 on the BSE. The NSE is India’s largest trading venue for equities and currency derivatives. It has also launched commodity trading, which is yet to pick-up pace.

The initial plan of NSE was to start trading in natural gas on its own platform for which it had received in principle regulatory approvals but it has now decided to buy a stake in IGX, the sources said. NSE did not reply to an email query regarding its stake purchase deal.

IEX shareholders

Other shareholders of IGX include Adani Total Gas, Torrent Gas, and Gail (India), who all have 5 percent stake each in the exchange. Some large shareholders of IEX include IIFL India Private Equity Fund - Series 1a, Vantage Equity Fund, American Funds Insurance Series Global Small Capit, Fidelity Investment Trust Fidelity Series, Smallcap World Fund, Inc, Wf Asian Reconnaissance Fund Limited, Massachusetts Institute Of Technology, Eastspring Investments India Equity Open Ltd, Baillie Gifford Pacific Fund. A few of these funds have their money pooled in from Mauritius based entities.

According to sources, the investments could be in excess of ₹26 crore.

IGX will trade gas futures that could become an alternative to spot market gas rates. The gas exchange has three physical hubs – Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh.

Buying spree

NSE has been on an acquisition spree over the last few months. In November 2020, NSE Academy, a wholly-owned subsidiary of the NSE, acquired controlling stake in Hyderabad-headquartered deep tech education firm TalentSprint.

Another subsidiary NSE Data & Analytics had acquired Cogencis Information Services, provider of real-time market data terminals to institutional customers, in January.

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Published on February 11, 2021
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