IFCI share price surged on Friday, September 4, climbing more than 8% to touch a fresh record high amid growing optimism surrounding the proposed initial public offering (IPO) of the National Stock Exchange (NSE). Positive sentiment in the broader Indian stock market also supported the sharp move in the stock.
IFCI opened the session at ₹96.01 per share on the BSE before attracting strong buying interest. The stock subsequently surged as much as 8.4% to hit a new all-time high of ₹103.95 per share.
The latest rally has further strengthened IFCI’s remarkable performance across multiple timeframes. The stock is currently trading 125% above its 52-week low of ₹46.20, which it touched in December last year.
Momentum has accelerated significantly in recent months. IFCI shares have gained more than 14% in just 1 week and jumped 35% over the past 1 month. The stock has surged 91% in 6 months and rallied more than 97% over the last 1 year.
The longer-term picture is even more striking. Over a 5-year period, the scrip has delivered multibagger returns of 794%.
Why Is IFCI Share Price Rising?
A key factor behind the market’s interest in IFCI is its indirect exposure to NSE through Stock Holding Corporation of India (SHCIL).
IFCI owns a controlling stake of more than 50% in SHCIL. SHCIL, in turn, holds a stake of over 4% in NSE. As a result, IFCI provides investors with indirect exposure to developments surrounding India’s largest stock exchange, making its share price particularly sensitive to progress on the much-awaited NSE IPO.
Investor optimism has increased after Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said the regulator was close to approving the draft red herring prospectus (DRHP) submitted by NSE for its proposed IPO.
NSE IPO Details
NSE filed its draft prospectus in June for an issue that will consist entirely of secondary share sales. The proposed public issue is entirely an offer-for-sale (OFS) of up to 14.89 crore equity shares, each carrying a face value of Re 1. The issue represents nearly 6% of NSE’s paid-up equity capital, with the issue size fixed at 6% of the exchange’s paid-up capital.
Several prominent institutions are among the proposed selling shareholders. These include State Bank of India, MS Strategic (Mauritius) Limited, Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte Ltd, Bank of Baroda, Stock Holding Corporation of India Limited, General Insurance Corporation of India, The New India Assurance Company Ltd., National Insurance Company Limited and United India Insurance Company Limited.
The progress towards an NSE IPO is particularly relevant for IFCI because of its controlling interest in SHCIL. Any movement towards the listing of NSE has the potential to influence investor perceptions regarding the value of IFCI’s indirect holding in the exchange.
However, the NSE’s proposed listing has also attracted differing views on valuation and future growth prospects.
In July, local brokerage house Dolat Capital Market Pvt. initiated coverage on India’s largest stock exchange with a bearish call. The brokerage said tighter regulations governing India’s equity derivatives market could hurt trading volumes and result in a decline in NSE’s market share.
According to the brokerage, the rich valuations currently commanded by the stock leave limited room for further upside.
NSE’s financial performance has nevertheless remained substantial. Its revenue from operations increased to ₹16,601 crore in FY26 from ₹14,780 crore in FY24. Net profit also rose to ₹10,302 crore in FY26 from ₹8,305 crore over the same period.
However, the FY26 numbers also reflected pressure on profitability compared with the previous year. NSE’s profit after tax declined 15% year-on-year to ₹10,302 crore in FY26 from ₹12,188 crore in FY25, partly reflecting the impact of SEBI’s tighter regulations on equity derivatives trading.
With the regulator reportedly moving closer to approving NSE’s IPO documents, investors will be closely tracking further developments around the proposed listing. For IFCI, its more than 50% stake in SHCIL and SHCIL’s over 4% holding in NSE have placed the company firmly in the spotlight, with the stock’s sharp rally reflecting growing investor interest in its indirect exposure to the exchange.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
