Markets India

Indian Financial Corp. (IFCI) shares jumped 6% on Monday following the Securities and Exchange Board of India (SEBI) approval of the National Stock Exchange (NSE)’s long-delayed IPO. The Rs 30,000-crore offering, which clears a key hurdle for NSE’s listing, directly impacts IFCI through its 50% stake in SHCIL, which holds a 4% NSE stake. The rally underscores investor optimism about the IPO’s potential to drive further gains in IFCI shares.

SEBI’s approval of the NSE’s draft offer document on Friday cleared a major hurdle for the exchange’s planned IPO, which aims to raise Rs 30,000 crore through an offer-for-sale of up to 14.89 crore equity shares. IFCI, which owns over 50% of SHCIL, gains indirect exposure to NSE through its 4% stake in the exchange. IFCI shares surged to Rs 107.36, marking a 6% rally, as traders anticipate the IPO’s valuation could amplify the stock’s gains.

The NSE’s IPO, expected to open on September 18 and list on September 25, has already seen grey market premium (GMP) rise to Rs 250–280 per share, up from Rs 150–180 earlier in the day. Analysts note that the IPO’s pricing will be critical to investor participation and market sentiment. “If the pricing leaves adequate value on the table, it could significantly enhance investor participation,” said Manan Doshi of Unlisted Arena.

IFCI’s shares have delivered over 500% total returns in three years and 850% in five years, with a market cap of Rs 28,700 crore. Technical indicators suggest continued bullish momentum, as the stock trades above key moving averages and shows rising ADX and MACD signals. Sudeep Shah of SBI Securities highlighted the stock’s breakout above a previous swing high of 95.80, indicating a potential uptrend continuation.

NSE’s IPO is expected to open on September 18 and list on September 25, with pricing likely around Rs 1,800 per share. SEBI’s approval of the draft offer document marks the final regulatory step before the offering.

The NSE IPO approval has catalyzed IFCI’s stock rally, leveraging its indirect stake in the exchange. Further gains hinge on the IPO’s valuation and market response, with technical indicators suggesting continued upward momentum.

Topics: FINANCIAL MARKETS, STOCK MARKET, IPO, INVESTMENT, SHARE PRICE, EQUITY, INDIAN STOCKS, SEBI, NSE

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Source: ET Markets