IFCI shares fell more than 4% on Wednesday after reports suggested the National Stock Exchange could price its initial public offering below earlier indications and reduce the stake offered. At 9:27 am, IFCI shares were trading 4.01% lower at ₹88.90 on the NSE, compared with their previous close of ₹92.61. The stock opened at ₹92.50, touched a high of ₹93.56 and slipped to an intraday low of ₹88.31, underperforming the broader market with the Nifty 50 trading about 0.5% lower during the same period. Despite Wednesday's decline, IFCI shares remained up 20.22% over the past month, outperforming the Nifty 500, which fell 2.95% during the same period. The stock was also up around 68% year-to-date, though this represents a significant pullback from the recent highs when it had delivered impressive returns.
NSE is likely to price its IPO between ₹1,700 and ₹1,785 per share, below the ₹2,000-₹2,100 range previously marketed, according to reports. At the upper end of the proposed band, the exchange would be valued at around ₹4.4 lakh crore, or $46.4 billion, as reported by Bloomberg. The exchange may also reduce the stake offered to about 5.5% of its equity capital from the previously planned 6%. The public issue, which will see light after nearly a decade of regulatory delays, will place NSE among India's 10 most valuable companies by market capitalisation. The initial public offering of the stock exchange, expected to raise around ₹30,000 crore, will entirely comprise an offer-for-sale (OFS) of up to 14.89 crore equity shares. NSE is reportedly targeting a listing in the week beginning September 21, with the exchange dominating the country's equity derivatives market.
IFCI owns more than 50% stake in Stock Holding Corporation of India (SHCIL), which, in turn, holds over 4% of NSE. 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 lower-than-expected price range and potential reduction in the offer size weighed on IFCI because of its indirect exposure to NSE. As a result, developments affecting NSE's valuation have a bearing on the value investors assign to IFCI's indirect holding. Investor sentiment has strengthened further after Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey indicated that the market regulator was nearing approval of NSE's draft red herring prospectus (DRHP) for its proposed public offering. Also read: ESDS Software shares rally 10%, skyrocket 235% from IPO price in 4 days.
From a technical perspective, analysts say IFCI remains firmly in an uptrend despite the recent volatility. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities noted that the stock continues to make higher highs and higher lows and is trading above key moving averages. The rising Average Directional Index (ADX) on both weekly and daily charts points to strengthening bullish momentum, while positive movement in the MACD further reinforces the outlook. The stock's recent closed above its previous swing high of ₹95.80 signals a technical breakout, with immediate support now seen in the ₹95.5–96 zone. The 109.14 level, the 27% Fibonacci extension of the 30 March – 17 June upswing, forms the immediate barrier, with a break of this price level potentially unlocking higher targets at the 61.8% Fibonacci extension at 126.33. Conversely, a breakdown of the 17 June low at 95.80 could push the stock toward the 83.55 low of 28 July. The strong upside move has been driven by exceptionally strong trading volumes and speculative interest in anticipation of the NSE IPO, though this presents key risks if the IPO is delayed or market valuation disappoints.
