New Delhi [India], October 31 (ANI): State-owned GAIL (India) Ltd has given in-principle approval to list its wholly owned subsidiary GAIL Gas Ltd on Indian stock exchanges through an initial public offering (IPO), with a proposal to dilute up to 25 per cent of its equity in the company.

In an exchange filing on Friday, GAIL said its board had approved the listing of GAIL Gas shares through the IPO route. The proposal marks a step towards bringing the subsidiary to the public markets, although the final structure and extent of the stake sale are yet to be decided.

The filing said the IPO would involve "diluting GAIL's equity in GGL upto 25%". It added that GAIL Gas would submit a final proposal based on recommendations from the Book Running Lead Managers (BRLMs), covering valuation, price band, the mode of the offering and other terms and conditions.

The final extent of dilution, along with the IPO structure and other terms, will require approval from the GAIL board. The company said the details would be communicated to the stock exchanges after they are finalised.

The development comes as GAIL reported revenue from operations of Rs 45,924 crore in the second quarter of FY27, compared to Rs 38,981 crore in the first quarter. Profit before tax (PBT) stood at Rs 5,838 crore, against Rs 5,773 crore in the preceding quarter, while profit after tax (PAT) increased to Rs 4,650 crore from Rs 4,292 crore.

For the first half of FY27, the company's revenue from operations rose to Rs 84,905 crore from Rs 69,824 crore in the corresponding period of the previous financial year.

The company's PBT for April-September 2026 stood at Rs 11,611 crore, against Rs 5,357 crore in the year-ago period. PAT during the first half increased to Rs 8,943 crore from Rs 4,104 crore in the corresponding period of FY26. (ANI)