IFCI Stock Rises 10% As NSE IPO Raises Value-Unlocking Hopes; Shares Gain 70% In 2026

IFCI shares jumped nearly 10% in afternoon trade on Wednesday, September 2, as investor interest in the state-run financial institution continued to build around its indirect exposure to the National Stock Exchange (NSE).

The stock was trading at ₹95.58, up ₹8.32 or 9.53%, at 12:35 pm on tuesday, taking its market capitalisation to close to Rs 24,500 crore. The stock is up 20% in the past month alone and has delivered gains of nearly 700% over the last five years, though this year's move has been sharp even by that standard.

The recent rise in IFCI has come without any major change in its core lending business. Instead, the stock has drawn attention because of its indirect holding in NSE, which is preparing for its long-awaited IPO.

IFCI owns a controlling 52.86% stake in Stock Holding Corporation of India Ltd (SHCIL). SHCIL, in turn, holds a 4.4% stake in NSE. The proposed listing of NSE has led investors to assess the possible value of this holding and the potential benefit for companies with exposure to the exchange.

NSE IPO Moves Closer

NSE's IPO plans have moved forward after years of delays. The Securities and Exchange Board of India (SEBI) has issued observations on the exchange's draft papers and is awaiting a response from its lead manager.

The development came a day after SEBI Chairman Tuhin Kanta Pandey said the regulator was close to approving NSE's IPO papers.

NSE filed its draft red herring prospectus (DRHP) with SEBI in June. The proposed offer involves the sale of up to 14.89 crore shares, representing nearly 6% of NSE's paid-up capital.

The IPO will be entirely an offer for sale (OFS), with no fresh issue component. NSE is expected to raise around ₹30,000 crore through the proposed share sale, while the exchange could command a valuation of close to ₹5 lakh crore.

According to sources cited by Business Today, NSE is targeting a listing on or before September 25.

The IPO process has been pending for years due to regulatory issues, including matters related to the exchange's co-location and dark fibre cases. The process gained momentum earlier this year after NSE received a no-objection certificate from SEBI, following which its board approved the IPO plan.

Why NSE IPO Matters For IFCI

IFCI's connection to NSE comes through Stock Holding Corporation of India Ltd (SHCIL), in which it owns a 52.86% stake. SHCIL holds 4.4% in NSE.

The proposed NSE IPO could give the market a clearer idea of what that stake is worth. That has brought IFCI into focus as investors look at companies that could benefit from the exchange's listing.

IFCI shares have gained nearly 70% so far this year, even as the Sensex and Nifty50 have fallen around 8%. The stock is also up nearly 20% in the past month and close to 700% over five years.

IFCI, set up in 1948, was India's first development financial institution. The state-run company provides financial services for industrial and infrastructure development and also works as a nodal agency for several government schemes, including production-linked incentive (PLI) schemes.

With NSE's IPO moving ahead, the exchange's eventual valuation could be important for IFCI. A listed NSE would also give investors a market price against which its stake held through SHCIL can be assessed.

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