New Delhi: GAIL Gas Limited, a wholly owned subsidiary of GAIL (India) Limited, is exploring the possibility of listing on the stock exchanges and has floated a tender to engage a consultant for the purpose. “GGL is exploring the possibility of listing in Indian Stock Exchange for which it intends to hire a consultant to study various aspects related to listing of GGL,” the tender document, dated August 28, said. The tender will close on September 23.
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GAIL Gas handles the city gas distribution (CGD) business of its Maharatna parent company. It is implementing projects across 16 Geographical Areas (GAs) in eight states — Madhya Pradesh, Haryana, Uttar Pradesh, Karnataka, Uttarakhand, Odisha, Jharkhand and Chhattisgarh.
According to its Annual Report for 2024-25, the company supplies piped natural gas (PNG) to over two lakh households and 1,600 industrial and commercial customers, in addition to operating more than 500 compressed natural gas (CNG) stations. It is also pursuing CGD business in Andhra Pradesh, Rajasthan, Gujarat, Uttarakhand, Goa and Assam through joint ventures.
The tender document further revealed that GAIL Gas is contemplating the acquisition of GAIL’s six GAs spread across Bihar, Jharkhand, Odisha and Uttar Pradesh. The move, if completed, will expand the company’s CGD footprint significantly ahead of a potential market debut.
In 2024-25, the company achieved its highest-ever revenue from operations of Rs 12,231 crore. Profit after tax stood at Rs 451 crore, an increase of 40 percent over the previous year’s profit.
The consultant will be tasked with providing an indicative valuation range of the company, including the six GAs presently under GAIL, evaluating market conditions and investor sentiment to assess the timing for a listing, carrying out risk assessment, reviewing compliance with securities regulations and corporate governance standards, and recommending a shareholding structure.
According to projections by the Petroleum and Natural Gas Regulatory Board (PNGRB), natural gas demand in India is likely to rise about 8 percent annually to 297 MMSCMD by 2030 under the “Good-to-Go (GtG)” scenario. The CGD segment is expected to be the largest driver of demand, accounting for 29 percent of total consumption in 2030 and 44 percent in 2040.
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Analysts say this demand trajectory underscores why GAIL Gas may be looking at a stock exchange listing — to tap investor appetite and raise capital for scaling its CGD network at a time when the segment is set to dominate India’s gas market.
