IFCI Shares Hit Two-Month High On NSE IPO Expectations
The non-banking financial company IFCI Ltd. extended its advance for the second day and hit over two-month high on Tuesday on hopes of the listing of the National Stock Exchange. This surge in IFCI shares can be attributed to the company’s stake in NSE through Stock Holding Corporation of India, which is expected to benefit from the upcoming IPO.
Background of IFCI and Stock Holding Corporation of India
IFCI is a non-deposit taking, non-banking financial company in the public sector, set up in 1948 as a statutory corporation. It is mandated to provide support for the diversified growth of industries. The company has six subsidiaries and one associate under its fold, according to data on its website. IFCI is also a nodal agency to monitor loans for the Sugar Development Fund since 1984.
Stock Holding Corporation of India, on the other hand, is a subsidiary of IFCI, which holds a 4.4% stake in the National Stock Exchange. In 2024, IFCI received the approval to merge Stock Holding Corporation of India into itself, thereby increasing its stake in NSE.
Expectations from NSE IPO
Securities & Exchange Board of India chief Tuhin Kanta Pandey on Saturday said that NSE is likely to receive a no-objection certificate from the regulator for its public issue by the end of this month. This news has sparked hopes of the listing of the National Stock Exchange, driving up IFCI shares to a two-month high.
According to ICRA, a leading credit rating agency, IFCI will benefit from the sizeable stake held by Stock Holding Corporation of India in the National Stock Exchange, thus improving its financial flexibility. This is expected to have a positive impact on IFCI’s financial performance and stock price.
IFCI’s Financial Performance and Stock Price
IFCI shares hit over one-month high on Tuesday, extending advance for the second consecutive session. The scrip rose as much as 5.62% to Rs 59.60 apiece on Tuesday, highest level since Oct. 31. It pared losses to trade 2.68% higher at Rs 57.97 apiece, as of 9:56:23 a.m. This compares to a 0.25% decline in the NSE Nifty 50 Index.
IFCI has risen 12.51% in the last 12 months, outperforming the broader market. Total traded volume so far in the day stood at 5.03 times its 30-day average. The relative strength index was at 66.10, indicating a strong uptrend in the stock.
Investment Opportunities in IFCI
With the expected listing of the National Stock Exchange, IFCI shares are likely to see a significant upside. Investors looking to invest in the stock market can consider IFCI as a potential investment opportunity. However, it is essential to do your own research and consult with a financial advisor before making any investment decisions.
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Conclusion
In conclusion, IFCI shares have hit a two-month high on expectations of the National Stock Exchange’s IPO. The company’s stake in NSE through Stock Holding Corporation of India is expected to benefit from the upcoming IPO, driving up the stock price. Investors looking to invest in the stock market can consider IFCI as a potential investment opportunity. However, it is essential to do your own research and consult with a financial advisor before making any investment decisions.
