The Board of Directors of Indian Oil approved the deal at its meeting held on December 20
Mumbai: Indian Oil Corporation Limited (IOCL) said on Tuesday it has acquired a 4.93 per cent equity share in Indian Gas Exchange Limited, the country's first automated national level gas exchange.
The Board of Directors of Indian Oil approved the deal at its meeting held on December 20, Indian Oil said in a regulatory filing to the Bombay Stock Exchange.
"The Board of Indian Oil at its meeting held on 20 December 2021 has accorded approval for the acquisition of 36,93,750 equity shares of the face value of Rs.10/- each equivalent to 4.93 per cent of the share capital in Indian Gas Exchange Limited (IGX)," the company said in a statement.
IGX is India's first automated national level "Gas Exchange", which ensures transparent price discovery in natural gas and facilitates the growth of natural gas in India's energy basket.
The acquisition of an equity stake in IGX is a strategic opportunity for Indian Oil to become part of India's natural gas market and to increase its presence to achieve a leadership position in the market.
IGX started operations on June 15, 2020 as a gas trading platform and has been operating as the gas exchange since December 2020. It operates under the regulatory framework of the Petroleum and Natural Gas Regulatory Board (PNGRB).
Major equity holders of IGX include Oil and Natural Gas Corp (ONGC), Gas Authority of India Limited (GAIL), Adani Total Gas, and Torrent Gas.