IFCI shares surged more than 11% on Friday following the National Stock Exchange's announcement of its much-awaited initial public offering. According to reports from ET Now, the rally was driven by optimism surrounding NSE's IPO preparations, with the government-owned financial institution holding an indirect stake in the stock exchange through its subsidiary. The surge reflects investor confidence in the potential value unlocking from NSE's public listing, with IFCI shares trading at ₹57.50, up ₹3.47 from the previous close of ₹54.03 on the BSE. As per ET Now, IFCI opened at ₹54.93 and gained to hit an intra-day high of ₹59.84, representing approximately 11% gains despite broader market weakness.
As reported by ET Now, NSE has appointed 20 merchant bankers for its IPO, including major financial institutions such as Kotak Mahindra Capital Company, JM Financial, Axis Capital, IIFL Capital Services, Motilal Oswal Investment Advisors, ICICI Securities, SBI Capital Markets, Nuvama Wealth Management, HDFC Bank, Avendus Capital, Morgan Stanley India Company, Citigroup Global Markets India, J.P. Morgan India, H SBC Securities and Capital Markets (India), IDBI Capital Markets & Securities, 360 ONE WAM, Anand Rathi Advisors, DAM Capital Advisors, Pantomath Capital Advisors, and Equirus Capital. The exchange has also selected eight law firms for the offering, including Cyril Amarchand Mangaldas, Khaitan & Co, Latham & Watkins LLP, Sidley Austin Singapore Pte. Ltd., AZB & Partners, S&R Associates, Shardul Amarchand Mangaldas & Co, and Trilegal. Based on prevailing grey market prices, the IPO could potentially raise approximately ₹23,000 crore.
According to ET Now, IFCI holds a 52.86% majority stake in Stock Holding Corporation of India (SHCIL), which in turn holds a 4.4% stake in NSE. Based on NSE's current unlisted market valuation of around ₹5 lakh crore, Stock Holding Corporation's total stake in the exchange is worth more than ₹22,000 crore. This indirect exposure through its subsidiary provides IFCI with potential value from NSE's public listing, with Stock Holding Corporation potentially serving as a selling shareholder in the offer-for-sale component of the IPO. As per ET Now, the proposed IPO will consist entirely of an offer-for-sale (OFS) by existing shareholders, with no fresh issue of shares, making IFCI's subsidiary's stake particularly valuable.
As reported by ET Now, Life Insurance Corporation of India remains the single-largest shareholder in NSE with a 10.72% stake. Other key shareholders include Aranda Investments Mauritius (4.54%), Stock Holding Corporation of India (4.44%), SBI Capital Markets (4.33%), and Veracity Investments (3.93%). The IPO structure will likely include an offer-for-sale component where existing shareholders, including IFCI's subsidiary, can participate in the public offering. According to ET Now, NSE's unlisted shares are currently trading at ₹1,975 apiece in the grey market, with the stock declining 4.82% over the past month.
According to ET Now, the NSE IPO committee, chaired by Srinivas Injeti, approved the appointments of intermediaries at a meeting held on Thursday. The development follows the NSE board's decision in February to proceed with its long-pending public listing. In January, the Securities and Exchange Board of India (Sebi) granted a no-objection certificate (NOC), allowing the exchange to move ahead with its listing plans after more than a decade of delays. As per ET Now, NSE had first filed draft offer documents in 2016 to raise about ₹10,000 crore through an offer-for-sale by existing shareholders, but Sebi had withheld approval following governance concerns and the co-location case. Since then, the exchange approached the regulator multiple times seeking clearance.
