As GIFT City's First IPO Nears, Execution Must Match Ambition

By Varun Chojhar, Head of Bloomberg – South Asia

India’s International Financial Services Centre (IFSC) at GIFT City is poised for a landmark moment. With the expected launch of its first equity IPO around the corner, the IFSC is transitioning from a bold policy initiative to a meaningful market venue. A few more companies are preparing to list in foreign currencies on NSE IFSC and India INX, following guidelines from the International Financial Services Centers Authority (IFSCA) that enable direct capital raising from global investors. Their experience will set the tone for more such listings in the future.

This milestone represents more than technical readiness. It is emblematic of the progress the GIFT IFSC has made in aligning with global financial market norms, including liberalized capital flows, differentiated regulation, and time-zone-aligned platforms.

At a recent gathering of senior industry leaders at GIFT City convened by Bloomberg, IFSCA Chairperson K. Rajaraman characterized GIFT IFSC as more than a reform. He called it a strategic enabler of India’s financial future and India’s gateway to global capital. That sentiment resonated strongly and the consensus was clear: GIFT City’s vision is a compelling one, and it coincides with a unique moment of global interest in India as an investment destination. That ambition now enters a more demanding phase, one where ambition meets execution.

Already, GIFT City’s institutional foundation is significant, with more than 850 regulated entities operating across banking, markets, insurance, and fintech. The upcoming IPO will not be a standalone event; it is the next logical step in a steadily expanding ecosystem.

Over the past decade, policy momentum has positioned GIFT IFSC for success. What comes next is operational: delivering institutional architecture and a user experience that global capital is familiar with. IFSCA’s new listing eligibility norms, which include revenue, profit, and market cap thresholds, set a bar. But the real test will lie in the smooth execution of coordination across the regulatory ecosystem, market participants and the tax framework.

As primary market activity begins, GIFT City’s infrastructure will have the opportunity to shine on the world stage. A great example of this is the thriving banking activity that’s already underway at GIFT IFSC. More than 30 licensed International Banking Units (IBUs) have amassed more than USD 88 billion in assets and USD 1 billion in NRI deposits. In other words, we are seeing scale and cross-border traction. That institutional weight must now be mirrored in capital markets.

While derivatives instruments have dominated early activity, building depth in equities and fixed income is essential. Liquidity is best built organically and not mandated. Ideally, it should come through sustained participation by market makers and institutional investors.

Most importantly, the trading and settlement backbone must match, if not surpass global standards. The efficacy of collateral mobility, settlement certainty, and post-trade transparency will determine whether GIFT IFSC delivers and lives up to the promise of being a credible platform ready for scale. These are natural inflection points for any emerging financial center.

The long-term viability of GIFT City, though, rests on something harder to legislate: trust. In global finance that trust is built on governance, clear rules, enforceable contracts and credible dispute resolution. GIFT City has the opportunity to lead by example by fostering the integration of technology-driven solutions such as surveillance systems, smart compliance tools, and real-time audit trails into the core infrastructure and daily workflows of its ecosystem from the outset. This will give both regulators and investors the visibility they need.

Global investors do not just look for opportunities. They look for certainty, that includes predictable tax treatment, reliable exits, enforceability of claims, and institutional consistency.

Making GIFT IFSC more attractive globally also means ensuring that information on its instruments is readily and easily available across all international market platforms. Global investors depend on consistent access to data for tracking, benchmarking, and decision-making. They are watching for execution depth and a blend of regulatory responsiveness, operational fluency, and frictionless systems that are the hallmarks of global-standard market gateways.

GIFT City’s momentum is undeniable. It is clearest to us when we see even relatively small boutique hedge funds set up offices in GIFT IFSC to get a piece of the action. And when we see domestic airlines like IndiGo set up aviation financing subsidiaries there.

India’s ambition to build a globally respected financial center is both timely and necessary. But ambition alone is no longer enough. The upcoming IPO is a crucial milestone. The real test of GIFT City lies ahead: can it evolve into an operationally trusted, globally integrated platform for capital flows into India?

(Disclaimer: The views expressed in this article are personal and do not necessarily reflect those of Bloomberg LP or its affiliates.)