Gift City Gandhinagar: MSME-focused digital lender NeoGrowth achieved a significant milestone by becoming the inaugural company to utilize the unified depository in GIFT City. The SME lender proudly announced on Thursday that its currency bonds, valued at ₹3.5 million (approximately Rs 32 crore), have been listed from developing world markets at the International Financial Services Centre (IFSC) in GIFT City.
Transformative Opportunities for Offshore Funding in India
Arun Nayyar, MD and CEO of NeoGrowth emphasized the transformative prospects offered by the IFSC at GIFT City for Indian companies seeking offshore funds within the country. He expressed optimism that as this initiative gains traction, it will not only enable financial institutions like NeoGrowth to diversify funding sources but also create opportunities for other industries to explore funding beyond traditional channels.
Direct Listing on International Exchanges Opens Doors for Indian Companies
With the ability for Indian companies to now list directly on international exchanges in GIFT City, they gain access to a broader investor pool. Finance Minister Nirmala Sitharaman’s announcement of this move, subject to government notification, is poised to reshape the landscape of financial opportunities for businesses in India.
Tax Benefits and Services Expansion in GIFT City
The finance ministry has officially notified four essential financial services—bookkeeping, accounting, taxation, and financial crime compliance—that can be provided through IFSC or GIFT City units. Entities availing these services in GIFT City stand to benefit from tax incentives. This strategic decision is anticipated to boost the Big Four firms, enabling them to offer some of their services through subsidiaries established in GIFT City.