IFCI shares cross Rs 100 mark after 19 years; here's why

Shares of IFCI Ltd hit their 52-week high for the second straight session today amid expectations that NSE IPO could be moving closer to launch. The stock hit a record high of Rs 121.20 on December 17, 2007. IFCI owns over 50% stake in Stock Holding Corporation of India (SHCIL), which, in turn, holds over 4% in NSE. Hence, any development related to the exchange's IPO affects the stock indirectly.

The growing buzz around the NSE IPO has brought the stock above Rs 100 mark after 19 years. On December  19, 2007, the stock last crossed the Rs 100 mark on an intra day basis. It hit a high of Rs 107 in that session.

Since then, the IFCI stock has traded below the Rs 100 mark

Meanwhile, the stock hit a 52 week high of Rs 101.60 in the current session. It has gained over 16% in two sessions amid the buzz of NSE IPO. In the previous session too, the stock hit a 52-week high of Rs 99.45.

National Stock Exchange of India (NSE) is moving closer to a long-awaited initial public offering, with Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey indicating that the regulator is nearing approval of the exchange’s draft red herring prospectus (DRHP).

The development comes as NSE reportedly seeks a valuation of up to Rs 5.26 lakh crore, or around $55 billion, for its proposed IPO. NSE had filed its draft prospectus with SEBI in June.

According to the filing, shareholders are looking to sell up to 148.9 million shares, equivalent to around 6% of NSE’s equity.

Several prominent institutional investors are expected to participate in the offer for sale. These include State Bank of India, MS Strategic (Mauritius) Limited, Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte Ltd, Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India, The New India Assurance Company, National Insurance Company and United India Insurance Company.

In a notable feature of the proposed listing, NSE’s shares will be listed on the BSE. The arrangement effectively reverses the existing setup, under which BSE’s shares are listed on NSE.