Torrent Gas Ltd. has filed its updated draft red herring prospectus for an initial public offering that is entirely an offer for sale. The Ahmedabad-based city gas distributor filed the document on Sept. 8.
Promoter Torrent Investments Ltd. will sell up to 33.5 crore shares of face value Rs 10 each. The company will not receive any money from the issue. All proceeds go to the selling shareholder after offer expenses and taxes. The shares on offer amount to 20% of the company's paid-up capital of 167.5 crore shares. Torrent Investments currently owns 100% of Torrent Gas.
Torrent Gas took the confidential pre-filing route. It pre-filed its draft prospectus on March 19 and received the Securities and Exchange Board of India observation letter on June 25. The company has received in-principle approvals from BSE and the National Stock Exchange on May 8.
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Offer Details
The offer is a 100% book-built issue. Not more than 50% of the net offer is reserved for qualified institutional buyers. Not less than 15% goes to non-institutional bidders and not less than 35% to retail individual bidders.
Axis Capital Ltd., Citigroup Global Markets India Pvt. and Kotak Mahindra Capital Co. are the book running lead managers. MUFG Intime India Pvt. is the registrar. The shares will list on both BSE and NSE.
The promoters are Torrent Investments, four Mehta family trusts, Sudhir Mehta, Samir Mehta, Jinal Mehta and Varun Mehta.
Key Risks
Gas allocation: Administered price mechanism and new well gas fell to 25.14% of total gas procured in the June quarter from 49.77% in fiscal 2024. Gross margin per standard cubic metre fell to Rs 15.93 in fiscal 2026 from Rs 18.53 in fiscal 2024, before recovering to Rs 18.05 in the June quarter.
Customer concentration: The ten largest customers accounted for 59.25% of revenue in the June quarter. Indian Oil Corp., Hindustan Petroleum Corp. and Bharat Petroleum Corp. alone contributed 52.74%.
Dependence on oil marketing companies: Arrangements with OMCs generated 52.47% of June quarter revenue. Torrent Gas operates 463 of its 557 CNG stations at OMC retail outlets. Some of these contracts allow termination without reasons on notice.
Expiring exclusivity: Marketing exclusivity had already expired on areas contributing 31.12% of volumes as of June 30. Areas accounting for a further 68.88% lose exclusivity between September 2028 and March 2030. After that, competitors can seek access to up to 25% of network capacity under regulator rules.
Group dependence: Torrent Gas signed a binding term sheet with Torrent Power Ltd. on Dec. 23, 2025, for regasified liquefied natural gas supply over 10 years from January 2027. The arrangement gives it about six LNG cargoes a year and access to Torrent Power's regasification capacity at Dahej. Torrent Gas also does not own the "Torrent" trademark, which belongs to Torrent Investments.
Geographic concentration: Pune, Jaipur, Chennai, Kanpur and Gorakhpur accounted for 64.47% of CNG and compressed bio gas volumes in the June quarter.
FY26 Financials
Revenue grew 34.8% in fiscal 2026. Net profit more than doubled. In the June quarter, revenue rose 28% year-on-year and profit rose from Rs 55.7 crore to Rs 129.9 crore.
Earnings per share stood at Rs 1.68 in fiscal 2026. Net asset value per share was Rs 13.25 as of June 30. Return on net worth was 13.43% in fiscal 2026. Total borrowings stood at Rs 3,336.4 crore as of June 30. Of this, Rs 2,674.4 crore falls due after five years.
The company declared a dividend of Rs 142.4 crore, or Rs 0.85 per share, for fiscal 2026 and paid it in fiscal 2027. That was its first dividend.
About The Company
Torrent Gas was incorporated in May 2018. It holds Petroleum and Natural Gas Regulatory Board authorisations for 17 geographical areas covering 34 districts across seven states and one union territory.
Its licensed footprint spans 121,214 square kilometres, or 4% of India's land mass, according to the prospectus.
Torrent Investments built its entire stake through 18 rights issues between 2018 and February 2023, all priced at the face value of Rs 10. Its weighted average cost of acquisition is Rs 10 per share, as certified by G.K. Choksi and Co. No outside investor has ever held shares in it.
As of June 30, the company operated 557 CNG stations and served 2,71,983 piped natural gas consumers. It had laid more than 11,385 kilometres of pipeline. Peak gas sales stood at 3.34 million standard cubic metres per day. CNG accounted for 72.37% of revenue in the June quarter. Industrial piped gas contributed 21.66%.
Torrent Gas won 10 of the 31 areas it bid for in the ninth PNGRB round and three of 20 in the tenth round. It won none of the 30 bids it placed across rounds 11 and 11A, and did not bid in rounds 12 and 12a.
Managing Director Manoj Jain served as chairman and managing director of GAIL (India) Ltd. before joining Torrent Gas in January 2024.
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