XED withdraws first-ever GIFT City IPO, cites global turmoil

Executive education platform XED decided to scrap its maiden $12 million issue, which was to be the first to launch from GIFT City, India’s International Financial Services Centre (IFSC). The decision comes as the issue saw a tepid response amid the ongoing crisis in West Asia.

“The company decided to withdraw the public issue in the current environment and hopes to tap the market at an appropriate time in the future” the company said. It has informed its decision GIFT City- IFSC authorities as well as listing exchanges. The shares were to be listed on NSE International Exchange (NSE IX) and India International Exchange (India INX) at GIFT City.

In a release, the education further added that its "decision to withdraw the current IPO offering prior to closing was driven by a combination of factors beyond its control. Despite strong retail interest in the offering, a significant portion of prospective retail applicants were unable to complete their bids within the offering window owing to KYC-related procedural bottlenecks, resulting in a material gap between expressed interest and actual subscription."

Further, on the institutional side, "response was muted reflecting the prevailing global risk-off sentiment, with institutional investors exercising heightened caution in the context of ongoing geopolitical uncertainties."

XED clarified that while it had the ability to proceed based on its subscription level, which was over the minimum threshold, the management said the current scenario carried a meaningful risk of post-listing price pressure given the relatively limited float.

Proceeding in such an environment would not have served the best interests of incoming shareholders or the long-term market standing of the Company. "The decision to withdraw is accordingly a proactive and governance-driven one, taken to ensure that when the Company lists, it does so under conditions that support fair price discovery and sustainable shareholder value creation," added the firm.

The firm's issue has been characterised by deferments and extensions of the listing timeline. On March 6, the firm postponed its opening to March 16. On March 24, the firm decided to extend its subscription window by a week.

Amid the volatility in West Asia, XED had moved its programs to Singapore, instead of Dubai. Further, in a conversation with Moneycontrol, the firm's management had shared that they expected their key investors to be institutions and non-resident Indians from Dubai, Abu Dhabi, and other West Asian locations.

Also Read | XED postpones GIFT City’s first IPO amid geopolitical uncertainties