IFCI shares slide 7% after stellar 30% monthly surge amid NSE IPO buzz

Shares of IFCI fell as much as 7% to a day’s low of Rs 95.3 on the BSE on Tuesday as investors booked profits following a sharp rally in recent sessions. The decline snapped the stock’s two-day winning streak, while the stock surged nearly 30% over the past month.

The recent uptick comes after the much-awaited IPO of the National Stock Exchange (NSE) received market regulator Sebi’s approval, clearing a key hurdle to become India’s second listed stock exchange.

Sebi approved NSE’s draft offer document on Friday, according to the regulator’s website. The initial public offering of the stock exchange, expected to raise around Rs 30,000 crore, will entirely comprise an offer-for-sale (OFS) of up to 14.89 crore equity shares.

Also read: NSE IPO set to deliver massive gains of Rs 7,200 crore to state-run insurance firms

IFCI owns more than a 50% stake in Stock Holding Corporation of India (SHCIL), which, in turn, holds over 4% of NSE. Through its controlling interest in SHCIL, IFCI enjoys indirect exposure to NSE, making its stock particularly sensitive to developments related to the exchange’s IPO.

Important things to know about NSE IPO

The Economic Times reported, citing sources, that National Stock Exchange is likely to price its IPO at around Rs 1,800 per share or slightly above. The company will likely announce the price band on September 15, according to a person aware of the development. If everything goes as per the schedule, the IPO is likely to open around September 18, while listing may occur around September 25.
Analysts say the exchange is already commanding premium valuations in the unlisted market. “NSE remains a capital-light near-monopoly. At around Rs 1,970-2,000 in the unlisted market, it trades near 45x FY26 earnings. That’s rich, but below BSE at around 70x and MCX at around 80x,” Nitant Darekar, research analyst at Bonanza, had said earlier.Seven public sector entities, including State Bank of India (SBI), Bank of Baroda, Stock Holding Corporation, GIC, New India Assurance, National Insurance Company, and United Insurance Company, are set to partially monetise their holdings in the National Stock Exchange (NSE) through the bourse’s long-awaited initial public offering (IPO).

Also read: NSE grey market premium soars on Sebi’s IPO approval

According to NSE’s Draft Red Herring Prospectus (DRHP) filed with market regulator SEBI, the seven government-owned entities together hold approximately 7.97 crore shares, part of the proposed offer for sale (OFS). Other shareholders include MS Strategic (Mauritius), Canada Pension Plan Investment Board, and Aranda Investments (Mauritius).

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.