National Stock Exchange’s (NSE) unit and Oil and Natural Gas Corporation Ltd (ONGC) will pick up stakes in a subsidiary of Indian Energy Exchange (IEX).
NSE Investments will acquire a 26% stake in Indian Gas Exchange (IGX) for Rs 19.2 crore (around $2.6 million) from IEX.
ONGC will pick up a 5% holding for about Rs 3.7 crore (around $506,370) from IEX.
The heads of NSE and ONGC said the stake purchases will help in increasing the share of gas in the country’s energy mix, as well as facilitate efficient and competitive trade in the sector.
“Having NSE and ONGC as our partners is a natural choice for us in our endeavour to deepen India’s gas markets,” IEX chairman and managing director SN Goel said.
Shares of ONGC were trading about 2% down at Rs 114.5 apiece, while IEX was around 2.4% up at about Rs 308 apiece. IEX reported consolidated net sales of around Rs 257 crore and profit of about Rs 175.7 crore for the 2019-20 financial year.
Others have also invested in the gas exchange this year. In January, Adani Total Gas and Torrent Gas picked up 5% stake each. In February, state-owned GAIL acquired another 5%.
IGX, which got authorisation in December, has 15 members and more than 500 registered clients along with three physical hubs across Gujarat and Andhra Pradesh.
