XED, India's first GIFT city IPO, withdraws issue after weak demand

XED Executive Development, the first company from India's low-tax GIFT City to launch an initial public offering, has withdrawn the IPO after delays with customer verification and weak market sentiments due to ‌the U.S.-Israeli ⁠war ⁠on Iran, it said on Monday.

The global executive ​education platform said it hopes to tap the market ​at an appropriate time in the future.

The withdrawal marks a setback for efforts to build ​India's Gujarat International Finance Tec-City, ⁠or GIFT ‌City, into a global ​capital markets ​hub competing with centres such as ⁠Singapore and Dubai.


The roughly $12 million IPO ​of XED had received subscriptions for ​only about 5% of the shares on offer as of 7:15 p.m. on Monday, according to data from exchanges.

The shares were to be listed on NSE International Exchange ‌and India International Exchange at GIFT City.

The company had earlier extended the ​bidding ​deadline to Monday, ⁠citing delays in completing mandatory video-based customer verification for non-resident Indians and foreign investors amid disruptions ​linked to the conflict in the Middle East.

The withdrawal also comes amid a global risk-off mood due to the widening conflict.

($1 = 94.7150 Indian rupees)