XED to Launch First-Ever IPO at GIFT City: How It Differs from NSE and BSE

India is set to witness a historic moment in its financial markets. XED Executive Development has filed its Red Herring Prospectus with the Registrar of Companies to raise $12 million through what will be the first-ever IPO at Gujarat International Finance Tec-City (GIFT City).

The issue, expected to open in early March, will see the company list its shares on the NSE International Exchange and India International Exchange, both located within GIFT City's International Financial Services Centre (IFSC).

Unlike traditional IPOs in India, this offering will be denominated in dollars, allowing investors to subscribe and exit in foreign currency. That single feature captures the larger ambition behind GIFT City, that is to create an international financial hub within India's borders.

Why GIFT City Was Designed

For years, Indian companies looking to raise foreign currency capital often turned to overseas financial centres like Singapore, Dubai or London. They typically used instruments like American Depository Receipts (ADRs) or Global Depository Receipts (GDRs) to tap global investors.

The government designed GIFT City to reverse that trend. The idea was to build an IFSC on Indian soil where companies could carry out cross-border transactions, raise foreign capital and trade in global currencies without leaving the country.

The regulatory framework for the IFSC is overseen by the International Financial Services Centres Authority (IFSCA), a unified regulator established by the governmnent. Unlike traditional markets that involve multiple regulators like SEBI and RBI, IFSCA supervises banking, capital markets, insurance and fund management activities within the IFSC under one roof. According to a report by EY, this single-regulator model reduces overlap and simplifies compliance.

Rapid Growth

GIFT City has expanded rapidly over the past few years. Official data shows that more than 1,034 entities are now registered in the GIFT IFSC across banking, capital markets, asset management, fintech, insurance and aircraft leasing. The hub currently hosts 38 banks with a combined asset base of approximately $100.14 billion.

Its international standing has also improved. GIFT City ranks 46th globally, its highest-ever position. It is also ranked fifth among 15 emerging financial centres and topped the reputation index in that category, according to a government data as of November 2025.

The scale of activity is growing as well. Banks operating from GIFT City have disbursed nearly $20 billion in dollar loans to Indian corporates, reflecting a sharp rise in its share of cross-border lending compared to two years ago. This has helped it compete with established global hubs in certain segments of international lending.

According to the EY report on GIFT IFSC, the centre houses more than 50 Alternative Investment Funds with a combined corpus exceeding $17.8 billion, indicating increasing institutional participation.

The physical infrastructure is expanding alongside financial activity. The city currently spans nearly 1,000 acres and is planned to grow to over 3,300 acres, including Special Economic Zone (SEZ) and Domestic Tariff Area (DTA) zones.

How GIFT City IPOs Differ from NSE/BSE Listings

The most visible difference between a GIFT City IPO and a listing on the NSE or the BSE is currency. IPOs in traditional markets are rupee-based, while GIFT City IPOs can be denominated in foreign currency like dollars. This reduces currency conversion risk for global investors and makes valuation comparisons easier for companies earning revenues overseas.

Another key distinction lies in public shareholding requirements. On Indian mainboard exchanges, companies are generally required to maintain at least 25% public float. In GIFT City, the minimum public shareholding requirement is 10%. This can allow promoters to retain a larger ownership stake in a firm at the time of listing.

Tax incentives also set GIFT City apart. IFSC units are eligible for a 10-year income tax exemption within a 15-year block, as per government notifications. There is no Securities Transaction Tax (STT) on trades conducted on IFSC exchanges, and certain capital gains exemptions are available to non-resident investors. These incentives are intended to make the platform competitive with global financial centres.

Why More Companies May Consider Listing There

The government had earlier said that direct listing at GIFT City will allow Indian companies, particularly startups and firms expanding globally, to access foreign investors more easily and potentially secure valuations aligned with international peers.

For companies with significant overseas revenues, a dollar-denominated listing offers natural alignment between earnings and fundraising. For promoters concerned about dilution, the lower public float requirement may be attractive. For global investors, the unified regulatory structure and tax benefits provide additional incentives.

XED Executive Development's IPO will therefore serve as a test case. If the listing succeeds and attracts strong investor participation, it could pave the way for more Indian companies to consider GIFT City as an alternative to traditional exchanges.