IFCI Share Price Slides Over 9% After Two-Day Rally as Investors Book Profits Despite NSE IPO Buzz

IFCI share price snapped its recent gaining streak on Tuesday, falling over 9% in intraday trade as investors booked profits following a two-session rally. The stock opened at Rs 103.40 apiece on the NSE, slightly higher than its previous close of Rs 102.51, but soon reversed course to hit an intraday low of Rs 92.75.

The pullback came even as IFCI remains in focus because of its indirect exposure to the National Stock Exchange. IFCI holds a controlling stake of over 50% in Stock Holding Corporation of India (SHCIL), which in turn owns more than 4% of NSE. This has made developments around NSE's proposed public listing an important trigger for IFCI shares.

Sentiment around the stock received a fresh boost after SEBI Chairman Tuhin Kanta Pandey indicated that the market regulator was nearing approval of NSE's draft red herring prospectus (DRHP), as reported by Livemint.

NSE IPO details

NSE filed its draft prospectus in June for an IPO structured entirely as an offer for sale. The proposed issue covers up to 14.89 crore equity shares with a face value of Re 1 each, representing nearly 6% of the exchange's paid-up equity capital.

The selling shareholders include State Bank of India, Bank of Baroda, General Insurance Corporation of India, The New India Assurance Company, National Insurance Company, United India Insurance Company and Stock Holding Corporation of India. Overseas shareholders include MS Strategic (Mauritius), Canada Pension Plan Investment Board and Aranda Investments (Mauritius).

For IFCI, the NSE listing remains significant because of SHCIL's stake in the exchange. A public listing would provide the market with a clearer reference point for NSE's valuation and could influence how investors assess the value of IFCI's indirect holding.

IFCI share price performance

Despite Tuesday's sharp decline, IFCI shares have delivered strong returns across multiple time frames.

The stock has gained more than 9% over the past week and 28% in the last month. On a year-to-date basis, IFCI shares are up more than 79%, while the stock has also gained around 79% over the past 12 months.

The longer-term gains are even sharper. IFCI shares have risen 448.27% over three years and 739% over five years.

With the stock having rallied sharply in recent sessions, Tuesday's decline comes as investors lock in some of those gains. Going ahead, developments around the NSE IPO are likely to remain an important factor for IFCI, given SHCIL's stake in the exchange.

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