State-owned GAIL (India) Ltd has taken the first major step towards bringing its wholly owned subsidiary, GAIL Gas Ltd, to the stock market. The company’s board has granted in-principle approval for an initial public offering (IPO) of GAIL Gas, with a proposal to offload up to 25 per cent of its equity through the public issue. The proposed listing will provide GAIL Gas an opportunity to enter the capital markets, although the final IPO structure, valuation and size of the stake sale are yet to be determined.
In an exchange filing on Friday, GAIL confirmed that its board had approved the proposal to list GAIL Gas shares on Indian stock exchanges through the IPO route. The company also clarified that further decisions on the offering would be taken after receiving recommendations from the appointed Book Running Lead Managers (BRLMs).
GAIL Board Approves GAIL Gas IPO Proposal
The board of GAIL has given its initial consent to the listing of GAIL Gas through a public issue. As part of the proposal, the state-owned energy company is considering reducing its ownership in the subsidiary by up to 25 per cent.
The exchange filing stated that the proposed public offering would involve “diluting GAIL’s equity in GGL up to 25 per cent”.
However, the approval is currently limited to the in-principle proposal. The company has not yet announced the expected IPO size, the number of shares to be offered or the likely timeline for the listing.
The development marks an important step in GAIL’s plans for its subsidiary, which is now being considered for a separate presence in the equity markets.
IPO Valuation, Price Band And Structure Yet To Be Finalised
While the board has approved the broad listing proposal, several important aspects of the public issue are still under consideration.
According to the filing, GAIL Gas will prepare and submit a detailed proposal after taking into account recommendations from the Book Running Lead Managers. These recommendations will cover the company’s valuation, IPO price band, offering structure and other terms and conditions.
The final decision on the extent of equity dilution and the overall IPO framework will require approval from the GAIL board.
The company has also indicated that details concerning the finalised proposal will be shared with the stock exchanges once the relevant decisions have been taken.
This means investors will have to wait for further announcements to get clarity on the proposed issue’s pricing, size and launch schedule.
GAIL Reports Higher Revenue In Q2 FY27
The IPO announcement comes alongside an improvement in GAIL’s financial performance during the second quarter of the current financial year.
The company reported revenue from operations of Rs 45,924 crore in Q2 FY27, compared with Rs 38,981 crore in the preceding April-June quarter.
Its profit before tax (PBT) increased to Rs 5,838 crore during the July-September period, against Rs 5,773 crore in Q1 FY27.
Profit after tax (PAT) also recorded an improvement, rising to Rs 4,650 crore from Rs 4,292 crore in the previous quarter.
First-Half FY27 Financial Performance Shows Strong Growth
GAIL also recorded higher revenue and profits during the April-September period of FY27 compared with the corresponding six months of the previous financial year.
Revenue from operations for the first half of FY27 stood at Rs 84,905 crore, up from Rs 69,824 crore in the year-ago period.
The company’s profit before tax witnessed a significant increase, reaching Rs 11,611 crore during April-September 2026, compared with Rs 5,357 crore in the corresponding period of FY26.
Similarly, profit after tax climbed to Rs 8,943 crore from Rs 4,104 crore over the same period.
