GAIL Gas Ltd exploring possibility of tapping into the stock market

New Delhi: GAIL Gas Ltd, a wholly owned subsidiary of GAIL (India) Ltd handling its City Gas Distribution (CGD) business, is exploring a potential stock market listing to fund future growth.

As a first step, the company has invited bids to appoint a consultant for a feasibility study. “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 states. Issued on August 28, 2025, the tender closes on September 23, 2025.

GAIL Gas is currently implementing CGD projects in 16 Geographical Areas (GAs) across eight states, including Madhya Pradesh, Haryana, Uttar Pradesh, Karnataka, Uttarakhand, Odisha, Jharkhand and Chhattisgarh. Its 2024-25 Annual Report highlights supply of PNG to over two lakh households and 1,600 industrial and commercial users, alongside more than 500 CNG stations. Through JVs, the company is also expanding in Andhra Pradesh, Rajasthan, Gujarat, Uttarakhand, Goa and Assam.

GAIL Gas reported record operational revenue of Rs 12,231 crore in FY25, with PAT at Rs 451 crore, reflecting a 40 per cent rise over the previous year. The company is also evaluating acquisition of six GAs from GAIL, spanning Bihar, Jharkhand, Odisha and UP.

The consultant will assess the company’s valuation, market conditions, investor sentiment, regulatory compliance, corporate governance, risk factors and recommend a shareholding structure.

India’s natural gas demand may rise 8 per cent annually to 297 MMSCMD by 2030, with CGD contributing 29 per cent that year and 44 per cent by 2040.