IFCI shares fell 4.01% to Rs 88.90 on the NSE at 9:27 am, following reports of a lower price band for the upcoming NSE IPO. The stock's decline was sharper than the broader market, with Nifty 50 trading about 0.5% lower.
The stock opened at Rs 92.50, reached a high of Rs 93.56, and dropped to an intraday low of Rs 88.31. The potential reduction in the NSE IPO price range from Rs 2,000-Rs 2,100 to Rs 1,700-Rs 1,785, along with a decrease in the offer size from 6% to 5.5%, has impacted IFCI due to its indirect stake in NSE.
IFCI owns more than 50% of Stock Holding Corporation of India, which holds over 4% of NSE. This indirect exposure means that changes in NSE’s valuation directly affect IFCI’s perceived value.
Despite the day's decline, IFCI shares have risen 20.22% over the past month, outperforming the Nifty 500, which fell 2.95% in the same period. Year-to-date, IFCI shares are up around 68%.
The NSE IPO, expected to be one of India's largest public issues, is reportedly targeting a listing in the week beginning September 21.
Background
The NSE IPO has been long-awaited and is considered significant due to NSE's dominance in India's equity derivatives market. The IPO's pricing and offer size are crucial for stakeholders with indirect exposure, such as IFCI.
Investors will be closely watching the final pricing and offer size of the NSE IPO, as these factors will significantly influence IFCI's market performance due to its indirect stake in the exchange.
