XED Executive Development, the first company from India’s low-tax GIFT City to launch a public offering, has extended bidding till March 30 due to delays in the customer verification process.
The $12 million IPO of global executive education platform, operating in over 25 countries, was earlier scheduled to close on Tuesday.
Company said the extension has been sought as Middle East conflict has created practical challenges for non-resident Indians and foreign investors in completing customer verification requirements.
The IPO, which opened on March 16, has received subscriptions for about 5% of the shares on offer as of 2:28 p.m. IST, according to exchange data.
“Despite the issue getting bids, the exchanges were not able to accept due to lack of timely video customer verification,” two sources with direct knowledge of the matter said.
“Brokers have been granted 15 days to complete the mandated verification process. Many customers were coming from the Middle East, which has increased complexity in getting the process completed on time,” a banker working on the issue said.
Global markets have been rattled by the U.S.-Israeli war on Iran, with foreign investors pulling $10.17 billion from Indian equities so far in March.
GIFT City, located in Prime Minister Narendra Modi’s home state of Gujarat, offers easier tax rules and regulations, as India seeks to attract global capital and compete with financial centres such as Singapore and Dubai.