India’s financial markets are set to reach a significant milestone tomorrow as GIFT City’s first-ever IPO opens for subscription.
XED Executive Development has filed its Red Herring Prospectus with the Registrar of Companies to raise US$12 million through the issue. The shares will be listed on the NSE International Exchange (NSE IX) and the India International Exchange (India INX), both operating within Gujarat International Finance Tec-City (GIFT City).
What sets this IPO apart is that it will be denominated in US dollars, allowing investors to subscribe and trade in foreign currency. The structure reflects GIFT City’s broader ambition of creating a platform where companies can raise international capital while remaining within India’s jurisdiction.
For decades, Indian companies seeking foreign capital often turned to global financial centres such as Singapore, Dubai, or London. They typically accessed global investors through instruments like American Depository Receipts (ADRs) or Global Depository Receipts (GDRs).
GIFT City was established to bring such cross-border financial activities back to India. The IFSC allows companies to raise foreign capital, conduct international transactions, and trade in global currencies without relying on overseas exchanges.
The regulatory framework for the IFSC is managed by the International Financial Services Centres Authority (IFSCA), which acts as a single unified regulator for banking, capital markets, insurance and asset management activities. This structure simplifies compliance and enables faster financial operations compared with systems involving multiple regulators.
Over the past few years, GIFT City has emerged as a fast-growing financial ecosystem.
More than 1,034 entities are currently registered in the IFSC, spanning banking, capital markets, asset management, fintech, insurance and aircraft leasing. The hub hosts 38 banks with a combined asset base exceeding US$100 billion.
Financial activity within the centre is expanding steadily. Banks operating from GIFT City have already disbursed nearly US$20 billion in dollar loans to Indian corporates, highlighting its growing role in cross-border financing.
Investment funds are also increasing their presence. The IFSC houses over 50 Alternative Investment Funds (AIFs) with a combined corpus of more than US$17.8 billion, indicating rising institutional participation.
IPOs launched within GIFT City differ from traditional listings on NSE or BSE in several ways.
The most visible difference is currency denomination. While domestic IPOs are rupee-based, GIFT City offerings can be issued in foreign currencies such as US dollars, making them more accessible to global investors.
The IFSC also offers several incentives, including no Securities Transaction Tax (STT) on trades and a 10-year income tax exemption within a 15-year block for eligible units. Companies are required to maintain a minimum public shareholding of 10%, lower than the 25% requirement on Indian exchanges.
As GIFT City’s first IPO opens tomorrow, the listing represents more than just a fundraising event. It serves as an important test for India’s ambition to build a global financial centre capable of attracting international capital. If the offering sees strong participation, it could encourage more companies to consider GIFT City as a platform for raising global funds from within India.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Mar 5, 2026, 11:38 AM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
