XED Institute may extend IPO subscription period amid weak demand
XED Institute may extend its IPO subscription window by three days amid weak demand and global uncertainty, with bids reaching only about 5 per cent so far.
 "XED Institute may extend IPO subscription period amid weak demand")
XED Institute, the first initial public offering (IPO) from GIFT City’s International Financial Services Centre (IFSC), may extend its subscription window amid ongoing unrest in West Asia, according to sources.
The IPO, which opened on March 16, was initially slated to close on March 24. However, in view of tepid demand and heightened global uncertainty, the company has approached exchanges seeking a three-working-day extension.
Data from NSE International Exchange shows the issue has received bids for only about 5 per cent so far.
“Under regulations, an IPO can remain open for up to 10 working days. This issue was originally planned for seven days. An application has been made to the exchanges for an extension. Given that overseas investors and NRIs are key participants, global uncertainties have weighed on demand,” said a person familiar with the development. "It is the first IPO and there are some teething issues regarding bids. For example, KYC of some retail investors is yet to be done and there are some issues around bidding and systems which are being addressed," said another source.
Emailed queries to the company remained unanswered till press time.
Sources added that KYC requirements and other operational processes may also delay the listing timeline.
The company had earlier postponed its $12 million fundraise by a week due to the West Asia conflict.
As the first IPO from GIFT City’s IFSC, the outcome of the issue is seen as a key test for future listings from the financial hub.
IPOs on the mainboard too are undergoing a rough patch. Last week, PhonePe announced that it has temporarily paused its IPO, planned for March-end.
Meanwhile, shares of toll plaza management firm Innovision tanked 28 per cent during their trading debut on Monday. This was despite Innovision lowering its price band due to insufficient demand amid the turbulence caused by the West Asia crisis.