IFCI share price bucked its gaining streak, slided over 9% in Tuesday’s trading session as investors rushed to book profits after two-day rally. IFCI shares opened at ₹103.40 apiece on NSE today, as compared to previous close of ₹102.51. The stock hit an intraday low of ₹92.75 apiece.
Why IFCI share price is in focus?
A major factor driving investor interest in IFCI is its indirect exposure to the National Stock Exchange (NSE) through Stock Holding Corporation of India (SHCIL).
IFCI holds a controlling stake of over 50% in SHCIL, which, in turn, owns more than 4% of NSE. This structure gives IFCI shareholders indirect exposure to developments at India’s largest stock exchange, making the company’s stock particularly responsive to progress on NSE’s much-anticipated IPO.
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.
NSE IPO details
The National Stock Exchange (NSE) filed its draft prospectus in June for a proposed IPO that will comprise entirely an offer for sale (OFS). The issue will involve the sale of up to 14.89 crore equity shares with a face value of Re 1 each. The proposed issue represents nearly 6% of NSE’s paid-up equity capital, with the offering size set at 6% of the exchange’s paid-up capital.
The selling shareholders include several prominent financial institutions, such as 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 (SHCIL), General Insurance Corporation of India, The New India Assurance Company Ltd., National Insurance Company Limited and United India Insurance Company Limited.
The proposed NSE IPO is of particular significance to IFCI, given its controlling stake in SHCIL. Progress towards NSE’s listing could affect investor sentiment around the value of IFCI’s indirect stake in the stock exchange.
At the same time, the proposed listing has sparked varied opinions among investors and market participants over NSE’s valuation and its potential for future growth.
IFCI share price trend
IFCI share price has given positive returns despite weak market sentiments. The stock has gained over 9% in a week and 28% in a month.
Furthermore, IFCI shares have further strengthened over 79% on year-to-date (YTD) basis and in a year.
Looking at the broader level, the stock has more than doubled investor’s money by giving multibagger returns of 448.27% in three years and 739% returns in five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
