IPO Update: XED’s $12-Million IPO – Why GIFT City’s First Equity Listing Could Redefine India’s Capital Markets
- 10th September 2025
- 04:00:00 PM
- 5 min read
Summary
For the first time in history, GIFT City will see an equity IPO. XED’s $12-million issue breaks away from the usual mainboard playbook — with only 10% float, global investor access, and tax incentives. This isn’t just another listing; it’s the beginning of a new era where Indian firms can raise international capital right from India’s own financial hub.
Mumbai | September 10 – India’s efforts to build a global financial hub at the Gujarat International Finance Tec-City (GIFT City) will reach a new milestone with the planned listing of XED Executive Development Ltd (XED). The company has filed papers for a $12-million initial public offering (IPO), making it the first-ever equity IPO to be launched at GIFT City.
While the issue size is modest compared with large mainboard offerings, the significance lies in the regulatory first it represents. Equity issuance at GIFT City has long been anticipated but never tested; until now, activity was largely confined to debt listings, fund structures and offshore banking.
What is GIFT City?
GIFT City, located in Gandhinagar, Gujarat, is India’s flagship project to establish an International Financial Services Centre (IFSC). It is regulated by the International Financial Services Centres Authority (IFSCA) and designed to operate on international market standards. The framework allows companies to raise capital, trade and settle in foreign currency, while offering tax incentives to global investors.
Put simply, GIFT City is India’s attempt to create its own version of Singapore’s Marina Bay or Dubai’s DIFC — a financial hub that competes globally but remains anchored in India.
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Details of the XED IPO
According to the Draft Red Herring Prospectus (DRHP), the IPO size is pegged at $12 million (₹100 crore). It comprises a fresh issue of $9.6 million and an offer for sale (OFS) of $2.4 million. The equity shares will be listed on the NSE IFSC and India INX, with NSE IFSC as the designated stock exchange. Global Horizons Capital Advisors (IFSC) Pvt Ltd is acting as the sole book-running lead manager.
Proceeds from the fresh issue will be directed towards technology investment, working capital, IPO expenses and potential acquisitions. The DRHP allocates $1.8m to technology, $2.4m to working capital, $1.2m to IPO expenses and $4.2m for general corporate purposes including M&A.
Why this IPO is Different?
This IPO underscores how GIFT City’s framework differs from the mainboard:
- Lower float: GIFT City requires only a 10% public float versus 25% on the mainboard.
- Foreign currency bids: Investors must fund bids in USD or other convertible currencies via offshore or IFSC accounts. Indian retail investors cannot participate directly except under restricted routes like RBI’s Liberalised Remittance Scheme (LRS).
- Tax incentives: GIFT City IPOs carry exemptions on capital gains for non-residents, dividend tax holidays, and no Securities Transaction Tax (STT).
- Anchor flexibility: IFSCA rules allow discounts of up to 20% for anchor investors with larger minimum bids and a 90-day lock-in (compared with 30 days on the mainboard).
Together, these features make GIFT City IPOs uniquely attractive for global capital flows while offering promoters more control.
About the compnay
Founded in 2018, XED- Executive Development Ltd is an executive education platform that delivers training programmes in collaboration with international universities, particularly Cornell University. The company operates in the fast-growing global executive education market, valued at $98.6 billion and projected to expand strongly through 2030.
Financially, XED has demonstrated rapid growth. Revenues rose from $1.7m in FY23 to $4.0m in FY24 and reached $4.6m in FY25 (Source: DRHP). The company turned profitable in FY25 with a net profit of $0.14m, after reporting a loss of $0.49m in FY23.
The DRHP highlights a concentration risk: a significant portion of revenues comes from Cornell-led programmes, raising concerns about dependence on a single academic partner.
The Significance for GIFT City
The XED IPO 2025 is less about the size of capital raised and more about the symbolic shift in GIFT City’s evolution. By moving into primary equity issuance, GIFT City signals its intent to become a serious venue for raising global capital.
For companies, it offers a new path to tap foreign investors while retaining promoter control. For global investors, it provides tax-efficient exposure to Indian firms without the complexities of overseas listings. For India, it marks progress in positioning GIFT City as a global financial hub on par with Singapore and Dubai.
If the IPO is successful, it could set the template for more mid-sized Indian companies and even foreign entities to consider GIFT City as a viable equity listing venue.
Bottomline
XED’s $12-million IPO may look small, but it is anything but ordinary. As the first equity listing at GIFT City, it is a bold experiment that could redefine how Indian companies connect with global capital.
The real question is: will this spark a wave of GIFT City IPOs and position India as a true rival to Singapore and Dubai?
Stay tuned with us for more deep-dive coverage on GIFT City IPOs, IPO listings, and how they could shape the future of investing in India.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
