XED Executive Development, which is set to become the first listed entity in GIFT City, has extended its initial public offering (IPO) subscription by around a week till Monday. The aggravated geopolitical situation created practical challenges for non-resident Indians and foreign investors in completing KYC formalities and processing subscription applications within the originally scheduled timeline, the company said.
“We have already collected quite a bit of bids…Investors’ response so far is okay. There are some challenges from the clients’ end,” Chief Executive Officer John Kallelil told FE. The Middle East is going through some pain, and the company doesn’t want to push that market too much during this time, he added.
The company has moved its programs to Singapore amid the uncertainty in the region. “We have to run the program…Participants who were travelling from around the world to Dubai are now flying to Singapore.”
Previous postponement
Earlier, XED had postponed the opening date of its IPO by 10 days to March 16, citing challenges caused by the West Asia crisis and the consequent meltdown in global equity markets. The company is not alone in this matter. Last week, Walmart-backed PhonePe kept its mainboard IPO in India on hold due to market volatility.
International Financial Services Centres Authority (IFSCA) Regulations, 2024 permits an IPO to remain open for up to 10 working days. XED said that all other terms and conditions of the public issue remain unchanged. “Investors who have already submitted applications are not required to take any further action,” as per a press release.
The geopolitical crisis, along with year-long US tariff uncertainties, eroded significant investor wealth from the secondary market, the impact of which was also felt in the primary space. Many companies which had received the Indian markets regulator’s nod for public issues last year are yet to tap the market, including Hero Fincorp, Prestige Hospitality Ventures, and Runwal Enterprises.