Key facts
- IFCI shares have risen approximately 30% in the past three trading sessions.
- IFCI shares reached a new record high of Rs 91.49 on Tuesday.
- The recent rally has increased IFCI's market capitalization by over Rs 5,660 crore.
- IFCI has an indirect exposure to the National Stock Exchange (NSE) through its stake in Stock Holding Corporation of India (SHCIL).
- NSE is reportedly preparing to file its draft IPO papers by Thursday.
- The NSE IPO is anticipated to be valued at over Rs 5 lakh crore.
The shares of IFCI experienced a significant surge, climbing nearly 30% over three days and reaching a fresh record high of Rs 91.49 apiece on Tuesday. This rally, which added over Rs 5,660 crore to the company's market capitalization, is attributed to expectations that the National Stock Exchange (NSE) will soon file its draft IPO papers. IFCI holds a 52.86% stake in Stock Holding Corporation of India (SHCIL), which in turn possesses a 4.4% stake in the NSE as of the December quarter, providing IFCI with indirect exposure to the exchange's potential listing.
Sources cited by CNBC-TV18 suggest that the NSE is likely to file its draft red herring prospectus (DRHP) by Thursday, with the valuation expected to surpass Rs 5 lakh crore. The exchange is reportedly planning to list between Navratri and Diwali this year. Business Standard also reported that NSE, along with Reliance Industries’ Jio Platforms, might file their IPO papers this week. The proposed listing is anticipated to be one of the largest in India's capital market history, offering a liquidity event for institutional investors and marking a milestone for the NSE. Earlier this year, SEBI granted a no-objection certificate for the NSE's IPO, removing a significant regulatory hurdle.
IFCI's stock performance has been strong, with a 68% gain year-to-date and a 41% increase in the past month. Over longer periods, it has delivered substantial returns, with a 638% gain in three years and 577% in five years. The company's current market capitalization stands at over Rs 24,650 crore.