IFCI, NIACL Extend Rise on NSE IPO Buzz, Then Turn Volatile on Profit Booking

Mumbai, Sept 3: Shares of New India Assurance Company Ltd (NIACL) and IFCI extended their rise in Thursday’s trading session amid buzz that subscription to the National Stock Exchange (NSE) IPO could begin this month. Unconfirmed reports said the IPO could be launched this month, triggering buying interest in stocks of companies that hold a stake in the NSE. IFCI, a public sector non-banking financial company (NBFC), holds a 52 per cent stake in Stock Holding Corporation of India Ltd (SHCIL), which in turn owns a 4.4 per cent stake in the NSE. 

IFCI shares surged to Rs 101.66 per share, up 3.4 per cent, however, later the stock turned red amid profit booking. New India Assurance Company holds a 1.42 per cent stake in the NSE. 

IFCI Gives Up Early Gains 

IFCI opened largely flat at Rs 98.21 against Wednesday’s close of Rs 98.32, but buying interest picked up sharply through the first hour of trade, with the stock touching an intraday high of Rs 101.66, up 3.4 per cent, as investors positioned themselves for a possible NSE listing. The rally, however, proved short-lived. As profit booking set in through the afternoon session, the stock steadily gave up its gains, slipping below Wednesday’s close and touching a low of Rs 94.50 before recovering marginally to trade at Rs 95.70, down 2.66 per cent, as of the last traded price. The stock’s volume-weighted average price for the day stood at Rs 98.39, reflecting the sharp swing between the morning’s exuberance and the afternoon’s retreat. Dealers said the stock’s outsized moves on comparatively thin volumes reflect how sensitive NSE-linked counters have become to even unconfirmed reports about the exchange’s listing timeline. 

NIACL Mirrors The Swing 

New India Assurance followed a similar pattern. The stock opened at Rs 198.70, against a previous close of Rs 199.11, and climbed through the morning to an intraday high of Rs 203.82, up 2.4 per cent, before the NSE-linked buying interest faded. Notably, the stock saw a second burst of buying around mid-morning that briefly pushed it back toward its highs, before sellers took control through the rest of the session. It then fell to a low of Rs 192.87, before paring some of the decline to trade at Rs 195.05, down 2.04 per cent, as of the last traded price. NIACL’s 1.42 per cent holding in the NSE is smaller than IFCI’s indirect exposure through SHCIL, but dealers said the stock has still seen heightened trading interest in recent sessions on the back of NSE listing speculation. 

Excitement Builds Around The NSE Listing 

The renewed buying interest in NSE-linked stocks comes as reports point to a listing window opening later this month, with public bidding expected to begin in the second half of September, ahead of the Shradh period that begins around September 26. That timeline follows a significant regulatory breakthrough in July, when markets regulator SEBI gave in-principle acceptance to a settlement of the long-pending co-location and dark-fibre cases that had held up the exchange’s listing plans for years, clearing one of the last major hurdles to the IPO process. The issue is structured entirely as an offer for sale, with existing shareholders together looking to divest roughly 6 per cent of the exchange, a stake that could fetch close to Rs 30,600 crore and rank among the largest IPOs in Indian market history. Grey market estimates cited in recent reports have pegged the exchange’s valuation at more than Rs 5.25 lakh crore, underscoring the scale of investor interest even before the formal price band and subscription dates are announced. Market participants expect the issue to draw strong demand from both domestic and overseas investors given the NSE’s dominant position as the country’s largest bourse, though the exact subscription window, price band and lot size are yet to be officially confirmed by the exchange. 

Source

• NSE