IFCI shares in focus after SEBI clears NSE IPO path

Synopsis

IFCI shares may draw attention in the special Budget session after SEBI granted clearance for NSE’s long-awaited IPO. IFCI holds indirect exposure through its majority stake in SHCIL, which owns shares in NSE, making the stock sensitive to developments around the exchange’s proposed listing and investor sentiment closely.

IFCI shares are expected to be in the spotlight during the special Budget trading session on Sunday, February 1, following a significant development in the capital markets. SEBI has granted a no-objection certificate (NOC) for the long-awaited IPO of the National Stock Exchange (NSE). This regulatory clearance removes a major hurdle for NSE’s listing and has a direct bearing on IFCI due to its indirect stake in the exchange.

IFCI owns a 52% stake in Stock Holding Corporation of India (SHCIL), which, in turn, holds 4.4% of NSE as of the December quarter. With NSE shares currently valued at around Rs 2,150 in the unlisted market, SHCIL’s stake is estimated to be worth about Rs 23,500 crore. 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.

The approval from SEBI marks a key regulatory milestone for NSE, which has been preparing for a public listing for several years amid governance reforms and scrutiny from regulators. Shri Srinivas Injeti, Chairperson of NSE, said, “We are delighted to receive SEBI approval for our IPO — a significant milestone in our growth journey. With this approval, we embark on a new chapter of value creation for all our stakeholders and reinforce NSE’s role as a cornerstone of the Indian capital markets.”

With SEBI's nod in place, NSE is expected to move closer to finalising the structure and timing of its IPO, though the exchange is yet to make an official announcement. According to an earlier Reuters report, NSE is said to be planning to file its draft listing papers by the end of March and is in discussions with investment bankers and law firms to finalise the prospectus and assess investor appetite. Given NSE’s dominant position in India’s equity and derivatives markets, the listing is expected to attract strong attention from both institutional and retail investors.

On the performance front, IFCI shares closed down 2.21% at Rs 55.09 on Friday. The stock has been largely flat over the past year, rising just 2%, but it has recorded a remarkable 350% gain over the last three years.

In terms of valuation, IFCI currently trades at a P/E ratio of 38.43, a Price-to-Sales ratio of 6.19, and a Price-to-Book ratio of 1.01. On the technical side, the 14-day RSI stands at 50.1, suggesting neutral momentum, as an RSI below 30 indicates oversold conditions while an RSI above 70 indicates overbought levels.

IFCI’s indirect exposure to NSE through SHCIL positions it as a key stock to watch, particularly as investors anticipate further developments on NSE’s IPO timing, structure, and investor response.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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