IFCI Share Price Falls Over 9% as NSE IPO Remains in Focus

IFCI shares came under selling pressure on September 8 after a two-day rise. The stock opened at ₹103.40 on the NSE, against the previous close of ₹102.51, and fell to an intraday low of ₹92.75. 

The stock was down more than 9% during the session. 

Why IFCI shares are in focus 

Much of the interest around IFCI is linked to its holding in Stock Holding Corporation of India (SHCIL). IFCI owns more than 50% of SHCIL, while SHCIL holds over 4% in the National Stock Exchange (NSE). 

That makes the proposed NSE listing relevant for IFCI shareholders. The IPO process has moved back into focus after SEBI Chairman Tuhin Kanta Pandey indicated that approval of NSE's draft red herring prospectus could be nearing. 

NSE had filed its draft prospectus in June. The proposed issue is entirely an offer for sale and covers up to 14.89 crore equity shares, each with a face value of Re 1. The issue would account for nearly 6% of NSE's paid-up equity capital. 

State Bank of India, MS Strategic (Mauritius) Limited, Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte Ltd and Bank of Baroda are among the selling shareholders. SHCIL is also part of the list, along with General Insurance Corporation of India, The New India Assurance Company, National Insurance Company and United India Insurance Company. 

The proposed NSE listing has also brought the exchange's valuation and future growth prospects into focus among investors and market participants. 

IFCI stock performance 

The fall on September 8 comes after a strong run in the stock. 

IFCI has gained more than 9% over the past week and 28% in one month. On a year-to-date basis, the stock is up more than 79%. The gain over one year is also more than 79%. 

Over a longer period, the stock has delivered a 448.27% return in three years. Its five-year return stands at 739%. 

The sharp move in IFCI shares has come as the market continues to track developments around the proposed NSE IPO and the value attached to IFCI's indirect holding through SHCIL.