India’s Torrent Gas Hires Citi, Two Others For $450 Million IPO

India's Torrent Gas Ltd. Eyes $450 Million IPO

Torrent Gas Ltd., the city-gas distribution arm of Torrent Group, is planning an initial public offering (IPO) that may raise up to $450 million, according to sources familiar with the matter.

The company has mandated three banks - Axis Bank Ltd., Kotak Mahindra Capital Co., and Citigroup Inc.'s local unit - to manage the share sale. Discussions are ongoing, and details including the deal size and valuation could still change, the sources said.

Key Facts:

• Expected fundraising: $450 million
• IPO managers: Axis Bank Ltd., Kotak Mahindra Capital Co., and Citigroup Inc.'s local unit
• Proceeds will be used: Capital expenditure and debt reduction
• Industry trend: Near-record fundraising in India, driven by energy and infrastructure issuers

The planned IPO will test investor appetite for city-gas distributors, as companies scale up operations to meet the government's push for cleaner fuels. Torrent Gas is authorized to develop city gas distribution networks and supply compressed natural gas for vehicles, as well as piped natural gas to industrial, commercial, and residential customers.

Company Overview:

• Revenue (FY 2025): 40.27 billion rupees ($449 million)
• Revenue growth: 40% year-over-year
• Licenses: Seven Indian states and one union territory
• Operational areas: 34 districts

Torrent Gas reported a revenue of 40.27 billion rupees for the fiscal year that ended March 2025, up from 28.75 billion rupees a year earlier, according to a Crisil Ratings report. The company is expected to be valued at around $3 billion, as reported by Bloomberg in August.

Torrent Gas, Axis Bank, Kotak Capital, and Citi didn't respond to emails seeking comments.