Key facts
- IFCI shares have risen 27% in two trading sessions.
- The surge is linked to optimism surrounding the National Stock Exchange's (NSE) upcoming IPO filing.
- IFCI has an indirect stake in NSE through its ownership in Stock Holding Corporation of India (SHCIL).
- NSE is reportedly expected to file its draft IPO documents with SEBI next week.
- SEBI had previously issued a no-objection certificate for the NSE IPO.
Shares of IFCI experienced a significant surge, climbing as much as 5.2% to an intraday high of Rs 89 on Monday. This marks a 27% rally over two consecutive trading sessions. The upward momentum is attributed to growing optimism that the National Stock Exchange (NSE) is nearing its initial public offering (IPO) filing. IFCI holds a substantial indirect exposure to the NSE through its 52.86% ownership in Stock Holding Corporation of India (SHCIL), which in turn owns 4.4% of the exchange. Media reports suggest NSE is expected to submit its draft red herring prospectus (DRHP) to SEBI next week, with some reports indicating a filing window between June 5 and June 15. This anticipated listing is considered one of the largest IPOs in India's history and a significant milestone for the exchange. Earlier this year, SEBI granted a no-objection certificate for the NSE IPO, removing a long-standing regulatory hurdle. IFCI's market capitalization currently stands at Rs 23,465 crore.