Indian Energy Exchange Limited (IEX) is in talks with strategic investors to sell a minority stake in its fledgling gas unit. According to IEX, it might sell as much as 49 per cent in the venture in a series of deals. The first accord is expected to be signed in three months’ time.
In June 2020, GAIL India Limited had also expressed interest in buying a stake. According to IEX, it had participated in the GAIL’s tender for expression of interest for its equity participation in the gas exchange. However, IEX has not received any communication from GAIL on the status of its bid.
The decision to sell minority stake has come in the light of India’s plans to expand the use of natural gas, the eco-friendly and economical alternate to other fuels. IEX is working with the government on areas including pricing, taxation and transmission to boost the fuel’s appeal. The government aims to raise the share of gas in its energy mix to 15 per cent over the next decade from about 6 per cent at present. As per the data compiled by Bloomberg, IEX’s shares have outperformed India’s equity benchmark in 2020 and are expected continue to do so for the next 12 months.