BSE shares drop 6%, IFCI rises 12% after SEBI’s NOC for NSE IPO: Here's why

The shares of Bombay Stock Exchange (BSE) dropped nearly 6 percent in the morning trading hours of February 1, after market regulator SEBI gave its much-awaited NOC for rival NSE’s initial public offering. IFCI shares meanwhile jumped around 12 percent. The shares of BSE fell to Rs 2,638 apiece, extending losses for the second consecutive session. IFCI shares meanwhile rose to Rs 61.69 apiece, snapping a two-day losing streak. IFCI currently has an effective, indirect stake of approximately 2.35 percent in the NSE through its majority ownership of Stock Holding Corporation of India (SHCIL). Hence, rising expectations of a strong valuation for NSE after its IPO may have boosted the stock. SEBI gives NOC for NSE IPO: Market regulator Securities and Exchange Board of India (SEBI) on Friday had issued a No Objection Certificate (NOC) for NSE to apply for IPO, sources told Moneycontrol. According to estimates, NSE may take 8-9 months to launch its IPO after receiving NOC from SEBI. It will however be Offer for Sale (OFS), and no money will come to the exchange, according to Moneycontrol. NSE had first filed for its IPO in 2016 and later had to withdraw. According to data cited by CNBC-Awaaz recently, NSE holds approximately 90-92 percent share, while BSE holds 8-10 percent share in the cash segment. In stock futures and options (F&O), NSE holds around 95 percent share, while BSE holds around 5 percent share. In index F&O, NSE holds nearly 80 percent share, and BSE holds approximately 20 percent share. Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.