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

New Delhi: The Indian Energy Exchange (IEX) on Thursday said that it has inked two separate share purchase agreements to sell 31 per cent of its stake in its subsidiary Indian Gas Exchange (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."