Torrent Gas Ltd, a leading city gas distribution company in India, is preparing to enter the capital markets with a proposed initial public offering that could raise up to US$ 450 million. The company has appointed Axis Bank, Kotak Mahindra Capital and Citigroup as advisers, with discussions under way to finalise the deal structure and valuation.

Part of the Torrent Group — a major energy-sector player with interests in power generation and distribution — Torrent Gas aims to use the proceeds for capital expenditure and to reduce a portion of its existing debt. The fundraising is expected to accelerate the expansion of its gas distribution networks across multiple cities while reinforcing its presence in existing markets.

India’s city gas segment has gained strong momentum as the country seeks to increase the share of cleaner fuels in its energy mix. Policies promoting piped natural gas for households and businesses, along with compressed natural gas for transport, have boosted demand. Companies such as Torrent Gas are scaling up to meet this expanding consumer base.

The planned IPO comes at a time of strong investor appetite in India’s equity markets, particularly for infrastructure and energy companies aligned with long-term national priorities such as energy transition and urban development. Market observers suggest Torrent Gas could achieve a valuation of around US$ 3 billion if favourable conditions persist.

A successful listing would mark a major milestone for Torrent Gas, transitioning it from a fast-growing private enterprise to a publicly traded company with wider access to capital.