IFCI shares rally over 16% in two days as NSE IPO draws closer
IFCI owns more than a 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.
NSE IPO soon?
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has said the regulator is close to approving the draft red herring prospectus (DRHP) filed by the exchange for its IPO.
Last month, a Bloomberg report said NSE is seeking a valuation of as much as Rs 5.26 lakh crore ($55 billion) in its planned IPO.
The exchange filed its draft prospectus in June for an offering that will consist entirely of secondary share sales. Existing shareholders plan to sell as many as 148.9 million shares, representing about 6% of the company, according to the filing.
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 are among the selling shareholders in the offer for sale.
Last month, the Securities and Exchange Board of India (Sebi) told NSE it would settle all pending matters, including the co-location and dark fibre cases that have dogged the exchange for years, for Rs 1,491.2 crore.The settlement clears the last major regulatory obstacle standing between India’s biggest stock exchange and an initial public offering that has been delayed repeatedly by legal and regulatory tangles.
NSE IPO details
The proposed IPO is entirely an offer-for-sale (OFS) of up to 14.89 crore equity shares with a face value of Re 1 each, representing nearly 6% of NSE’s paid-up equity capital. The issue size has been fixed at 6% of the exchange’s paid-up capital.
In July, Dolat Capital Market Pvt., a local brokerage house, initiated coverage on India’s largest stock exchange with a bearish call, saying tighter regulations on the country’s equity derivatives market would crimp trading volumes and lead to a decline in its market share. As such, the rich valuations that the stock currently commands leave little room for upside, it added.
NSE’s shares will be listed on BSE, mirroring the arrangement under which BSE’s own shares are listed on NSE.
NSE’s revenue from operations rose to Rs 16,601 crore in FY26 from Rs 14,780 crore in FY24, while net profit increased to Rs 10,302 crore from Rs 8,305 crore over the same period. However, profit after tax declined 15% year-on-year from Rs 12,188 crore in FY25 to Rs 10,302 crore in FY26, partly reflecting the impact of SEBI’s tighter regulations on equity derivatives trading.
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