Key facts
- IFCI shares surged 20% to a 52-week high of Rs 84.57.
- The rally is linked to anticipated NSE IPO filing.
- IFCI has indirect exposure to NSE through its stake in SHCIL.
- SHCIL holds a 4.4% stake in NSE.
- NSE is expected to file its draft IPO papers with SEBI soon.
IFCI shares experienced a significant surge of 20%, reaching a new 52-week high of Rs 84.57, amid heightened expectations surrounding the National Stock Exchange's (NSE) impending Initial Public Offering (IPO).
The rally in IFCI's stock is directly linked to its indirect exposure to the NSE. IFCI holds a controlling 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. This indirect ownership makes IFCI's stock performance sensitive to any developments concerning the NSE's public listing.
Reports indicate that the NSE is likely to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as early as next week. This move follows SEBI's earlier granting of a no-objection certificate for the long-awaited IPO, removing a significant regulatory hurdle.
The proposed listing of the NSE is anticipated to be one of the largest share sales in India's capital markets, offering an exit opportunity for several long-standing institutional shareholders. IFCI's stock has demonstrated strong performance recently, with gains exceeding 6% in the past week, 38% in the last month, and 59% year-to-date.