NIACL Jumps 26% In Six Sessions, IFCI Rebounds As NSE IPO Filing Spurs Buying

New India Assurance Company Ltd (NIACL) and IFCI remained in focus on Friday after the National Stock Exchange filed its draft red herring prospectus with the Securities and Exchange Board of India on June 17 for its proposed initial public offering.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

NIACL shares surged 11% during the session, extending their rally to a sixth straight day. The stock has climbed more than 26% since June 12, when reports emerged that NSE was preparing to submit its draft papers. Since the DRHP filing on June 17, the state-owned insurer’s shares have gained 16.33%.

According to the draft prospectus, New India Assurance will sell up to 1.05 crore equity shares with a face value of Re 1 through the offer for sale. The insurer had acquired the shares at a weighted average cost of ₹0.32 apiece. NIACL currently owns a 1.42% stake in the exchange.

IFCI Recovers After Previous Session’s Decline

Shares of IFCI also witnessed fresh buying interest and rose nearly 7% to an intraday high of ₹87.98 on the NSE. The advance came a day after the stock had fallen 8.62% amid profit-taking.

IFCI has participated in the rally linked to the anticipated NSE listing since June 12. Over the last six trading sessions, the stock has ended higher in four sessions.

The company does not hold a direct stake in NSE. However, it owns 52% of Stock Holding Corporation of India Ltd (SHCIL), which in turn holds a 4.4% stake in the exchange. Investors have been assessing the potential value of IFCI’s indirect exposure ahead of the public issue.

Offer Entirely Through OFS

NSE’s proposed IPO will be entirely an offer for sale, with existing shareholders divesting part of their holdings. The exchange will not raise fresh capital through the issue.

Several public sector institutions, insurers and financial investors are participating in the share sale. The filing has renewed interest in companies with direct or indirect ownership in the country’s largest stock exchange, leading to a sharp re-rating in some counters over the past week.

Investors Track Stake Value Ahead of Listing

The market reaction reflects growing attention on the value of legacy investments held by institutions in NSE. Many shareholders had acquired their stakes years ago at significantly lower prices and are now set to monetise a portion of their holdings through the IPO.

While the issue price band has not yet been announced, the filing has brought renewed focus to listed entities linked to the exchange. Market participants will now await regulatory approval and further details on the size and timing of the offering, which is expected to be one of India’s biggest public issues.