XED, India's First GIFT City IPO, Withdraws Issue Amid Weak Market Demand
XED Executive Development Withdraws IPO Amid Delays and Global Market Sentiment
March 30 - XED Executive Development, the first company from India's low-tax GIFT City to launch an initial public offering, has withdrawn its IPO due to delays with customer verification and weak market sentiments caused by the ongoing U.S.-Israeli war on Iran.
The global executive education platform has announced its intention to revisit the market at a more opportune time in the future. This withdrawal marks a setback for efforts to establish India's Gujarat International Finance Tec-City, or GIFT City, as a global capital markets hub competing with established centers such as Singapore and Dubai.
Key metrics for the IPO reveal a disappointing response from investors. As of 7:15 p.m. on Monday, the roughly $12 million IPO had received subscriptions for only about 5% of the shares on offer.
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| IPO Details | Value |
|---|---|
| IPO Size | $12 million |
| Subscription Percentage | 5% |
The shares were scheduled to be listed on the NSE International Exchange and India International Exchange at GIFT City. The company had previously extended the bidding deadline to Monday, citing delays in completing mandatory video-based customer verification for non-resident Indians and foreign investors amidst disruptions linked to the conflict in the Middle East.
The withdrawal also coincides with a global risk-off mood due to the widening conflict, underscoring the challenging market conditions faced by XED Executive Development.
Investor Takeaway
Investors should be cautious of market conditions before investing in IPOs.
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