IFCI shares surged over 9% to ₹60.08 during Sunday's special trading session, as reported by NDTV Profit, following the National Stock Exchange (NSE) receiving a no-objection certificate (NOC) for its initial public offering. This development comes after SEBI granted the NOC for NSE's long-awaited IPO, removing a major regulatory hurdle that has been pending for over a decade. The rally reflects investor confidence in the favorable outcome for IFCI, which is a government-owned non-banking finance company established to cater to the long-term finance needs of the industrial sector.
IFCI owns a 52% stake in Stock Holding Corporation of India (SHCIL), which, in turn, holds 4.4% of NSE as of the December quarter. As reported by The Economic Times, with NSE shares currently valued at around ₹2,150 in the unlisted market, SHCIL's stake is estimated to be worth about ₹23,500 crore. 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. The approval from SEBI has a direct bearing on IFCI due to this indirect stake structure.
With SEBI's approval secured, NSE is planning to dilute 4-4.5% of its share capital in its upcoming IPO, as reported by latest market sources. The exchange is expected to move closer to finalising the structure and timing of its IPO, though it is yet to make an official announcement. According to earlier reports, NSE is said to be planning to file its draft listing papers by the end of March and is in discussions with investment bankers and law firms to finalise the prospectus and assess investor appetite. Given NSE's dominant position in India's equity and derivatives markets, the listing is expected to attract strong attention from both institutional and retail investors.
IFCI shares have delivered returns of around 11% on a year-on-year basis, as reported by NDTV Profit, with the stock currently trading at a relative strength index of 50, which suggests neutral market sentiment. The company, which has total government ownership of around 66%, typically earns revenue through a mix of interest income, dividend income, fees and commissions as well as the sale of services. In terms of valuation, IFCI currently trades at a P/E ratio of 38.43, a Price-to-Sales ratio of 6.19, and a Price-to-Book ratio of 1.01. On the technical side, the 14-day RSI stands at 50.1, suggesting neutral momentum.
