New Delhi: State-run Indian Oil Corporation (IOC) has received a nod from its Board of Directors for the acquisition of 4.93 percent stake in Indian Gas Exchange (IGX). In a regulatory filing to the stock exchanges on Tuesday, IOC said that the Board of Directors accorded its approval to the proposal at a meeting held on December 20. "… it is hereby informed that the Board of IndianOil at its meeting held on 20th December 2021 has accorded approval for acquisition of 36,93,750 equity shares of the face value of Rs.10/- each equivalent to 4.93% of the share capital in Indian Gas Exchange Limited (IGX)," said Indian Oil without divulging any details about the value of the acquisition.
Explaining the rationale behind the acquisition, Indian Oil said, "The acquisition of equity stake in IGX is a strategic opportunity for IndianOil to become part of India's natural gas market and to increase its presence to achieve leadership position in the market." Indian Oil would be the latest investor to pick up a minority stake in the Indian Gas Exchange after Adani Total Gas, Torrent Gas, GAIL (India) Ltd and Oil & Natural Gas Corporation (ONGC).
Earlier in March this year, National Stock Exchange (NSE) acquired 26 percent stake in IGX.
Indian Gas Exchange Ltd (IGX) is India's first automated national-level gas exchange to promote and sustain an efficient and robust gas market and to foster gas trading in the country. Indian Gas Exchange (IGX) would play an important role in facilitating the achievement of the government's target of increasing the share of natural gas in India's energy basket from the current 6.5 percent to 15 percent by 2030.