Shares of IFCI jumped as much as 6.35% to Rs 102 on the NSE on Friday, as growing optimism around the long-awaited NSE IPO put the spotlight on the state-owned financial services company’s indirect exposure to the exchange.

The latest surge adds to a strong recent run for the stock. IFCI shares have rallied nearly 35% over the past month, reflecting growing investor interest as expectations build that NSE could finally move closer to its much-anticipated public listing.

IFCI owns more than 50% of Stock Holding Corporation of India (SHCIL), which in turn holds over 4% of NSE. This gives IFCI an indirect stake in the country’s largest stock exchange and makes its shares particularly sensitive to developments surrounding NSE’s proposed IPO.

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NSE IPO moves closer?

The IPO story gained fresh momentum after Sebi Chairman Tuhin Kanta Pandey said the regulator was close to approving the draft red herring prospectus (DRHP) filed by NSE.

The potential listing has already attracted significant market attention. A Bloomberg report last month said NSE is seeking a valuation of up to Rs 5.26 lakh crore ($55 billion) for the proposed IPO.
NSE had filed its draft prospectus in June for an offering that will comprise entirely of secondary share sales by existing shareholders. According to the filing, shareholders could sell as many as 14.89 crore shares, equivalent to around 6% of the exchange’s paid-up equity capital.For IFCI investors, the eventual valuation at which NSE enters the public markets could be an important trigger. A successful and richly valued NSE listing could potentially shine a brighter light on the value of IFCI’s indirect holding through SHCIL.

However, the outlook is not without risks. In July, Dolat Capital Market initiated coverage on NSE with a bearish view, arguing that tighter regulations governing India’s equity derivatives market could weigh on trading volumes and potentially erode NSE’s market share.

The brokerage also cautioned that NSE’s expected rich valuation leaves limited room for further upside.

Meanwhile, NSE’s shares are proposed to be listed on the BSE, creating an interesting market structure: BSE shares are currently listed on NSE, while NSE shares would be listed on BSE.

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IFCI share price and technical indicators

IFCI shares have rallied nearly 35% over the past month, reflecting strong buying interest in the stock. The company currently commands a market capitalisation of around Rs 25,970 crore, while its 52-week high stands at Rs 102.

From a valuation perspective, IFCI’s price-to-earnings (P/E) ratio stands at 148.14, while its price-to-book (P/B) ratio is 1.67.

On the technical front, IFCI’s 14-day Relative Strength Index (RSI) stands at 71.7. An RSI reading above 70 is generally considered to indicate an overbought zone, suggesting that the stock could witness some profit-taking or a pullback after its recent sharp rally.

The broader trend, however, remains bullish. IFCI is currently trading above all eight key Simple Moving Averages (SMAs), indicating strong underlying price momentum across different time frames.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Nearly half of respondents (47%) who do not subscribe to a traditional multichannel service instead subscribe to a virtual service. According to results from S&P Global Market Intelligence Kagan’s US MediaCensus survey, conducted in February, only 20% of those who don’t

Suppliers to Harvey Nichols are expected to receive less than 15p in the pound after the luxury department store group was acquired by Frasers Group through a pre-pack administration, according to new filings at Companies House.

The documents reveal that the group’s primary trading entity, Harvey Nichols and Company, fell into administration owing £270.5 million to unsecured creditors. Early-stage estimates from the administrators, FTI Consulting, indicate that a maximum of 15 per cent of that sum is expected to be returned.

Brand partners set to lose out include Victoria Beckham, Jimmy Choo and Canada Goose, which are owed about £353,349, £174,201 and £565,267 respectively. Other unsecured creditors include Jo Malone, Puig and Estée Lauder. Preferential creditors, among them HM Revenue & Customs, are expected to be repaid in full.

Frasers acquired Harvey Nichols last month, seeing off competition from Next and other international suitors after the chain was put up for sale by the Hong Kong billionaire Sir Dickson Poon following years of losses. Business Matters reported at the time on how Harvey Nichols was sold to Frasers through a pre-pack deal that preserved more than 1,000 jobs and secured the immediate future of its British store estate, including the Knightsbridge flagship and a number of regional stores.

How the pre-pack leaves creditors exposed

A pre-pack is a fast-track insolvency process in which a buyer is lined up to acquire the business straight after the administration. The House of Commons Library describes it as an arrangement under which the sale of a company’s business or assets is negotiated with a purchaser before the administrator is appointed.

The process is contentious in part because it can leave creditors lumbered with unpaid debts. Supporters argue that pre-packs are an efficient way to rescue struggling businesses, save jobs and maximise returns to creditors.

For the smaller brands and suppliers on the Harvey Nichols creditor list, the practical consequence is that the bulk of what they were owed by the old company will not be recovered, while the business itself trades on under new ownership.

Brand partners raised concerns over Frasers

The arrival of Frasers in the auction of Harvey Nichols was said to have caused concern among brand partners this summer. The FTSE 250 retailer, which is controlled by the billionaire Mike Ashley, had to elbow its way into the process after objections from a number of “prestige brand owners”.

After the sale was agreed, Kate Benson, Harvey Nichols’s chief merchant, moved quickly to reassure suppliers of their future under Ashley’s ownership. “Throughout the sales process we have spoken at length with Frasers, and we are confident that they understand our business and value our brand relationships,” Benson wrote in a memo reported by Sky News.

Frasers’ reputation among luxury suppliers was previously tarnished by its deal with Matches Fashion. The group bought the luxury clothing website for £52 million before placing it into administration in 2024, just weeks after the acquisition, putting hundreds of jobs at risk and leaving suppliers out of pocket. A question mark remains over the retailer’s ability to attract brand partners to Harvey Nichols given that history.

Ashley’s push into luxury

The acquisition marks a significant step in Ashley’s long-running effort to expand his retail empire’s share of the luxury market. Frasers, which also owns House of Fraser and Flannels, recently increased its stake in Hugo Boss to almost 48 per cent after making a £1.7 billion takeover offer for the German fashion house in the summer. It also raised its holding in Burberry in late July.

Michael Murray, the Frasers chief executive and Ashley’s son-in-law, has said that turning around Harvey Nichols will require “tough choices”. He added: “We are prepared to make those decisions, even if that means a smaller business in the near term, to create a stronger and more sustainable Harvey Nichols for the long term.”

Frasers and FTI Consulting were approached for comment.

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