IFCI shares have become one of the most closely watched PSU stocks as India’s long-awaited NSE IPO is now closer to reality. The stock has gained around 80 percent in six months. While the connection between IFCI and the NSE IPO may seem unusual as IFCI does not directly hold a significant stake in NSE, however IFCI owns 52.86% of Stock Holding Corporation of India, or SHCIL. SHCIL, in turn, holds around 4.4% of NSE, giving IFCI an indirect exposure to the exchange. As of now, reports suggest NSE has received SEBI approval for its IPO and is targeting a listing in the week beginning September 21, with September 25 expected as the likely listing date.
Feroze Azeez, Joint CEO, Anand Rathi Wealth Limited told Times Now Digital, “IFCI is attracting attention because of its connection with the National Stock Exchange (NSE). IFCI owns around 52.8% of Stock Holding Corporation of India Ltd (SHCIL), which in turn holds around 4.4% of NSE. This means IFCI has an indirect economic exposure of nearly 2.3% of NSE through its stake in SHCIL. If NSE lists, its shares would have a publicly quoted market price. This could make it easier to estimate the value of SHCIL’s NSE investment and, through SHCIL’s 52.8% ownership, the value attributable to IFCI. For instance, if NSE were valued at Rs 5 lakh crore at listing, SHCIL’s 4.4% stake would be worth nearly 22k crore. IFCI’s 52.8% economic share in SHCIL’s NSE stake would therefore correspond to nearly 11k cr. But this does not automatically put money into IFCI’s bank account. If SHCIL sells some NSE shares, SHCIL receives the money first. It could retain the proceeds for its business or distribute some of the proceeds to its shareholders, including IFCI. IFCI would then decide how to use any money it receives. The NSE listing could therefore bring greater visibility and potential value unlocking for an investment that IFCI already owns indirectly. However, the actual financial benefit will depend on NSE’s listing valuation, whether SHCIL monetises its stake, taxes and other costs, and how any proceeds are ultimately used. While the NSE listing could potentially create significant value, it does not mean IFCI shareholders will automatically receive a payout. IFCI’s own business performance and valuation will continue to determine the overall value of the stock.”
Analysts also believe the recent rise in IFCI shares is largely being driven by the market’s growing optimism surrounding the potential value unlocking from the long-awaited NSE IPO. Investors are increasingly viewing IFCI as an indirect play on NSE’s listing prospects. As the exchange moves closer to its IPO process by appointing merchant bankers and legal advisors, market participants are reassessing the value of companies that hold exposure to NSE. This has brought IFCI into the spotlight due to its indirect ownership link to the exchange.
IFCI Share In Focus Ahead Of NSE IPO: Why NSE Listing Could Unlock Hidden Value
