NSE IPO proxy play! Why smallcap IFCI shares jumped 26% in just 1 week

Synopsis IFCI shares have surged 26% in a week as expectations rise over Sebi potentially approving NSE’s long-delayed IPO this month. The NBFC holds an indirect stake in NSE through SHCIL, whose 4.4% stake is valued at about Rs 23,000 crore. Investor interest has also boosted unlisted NSE shares and lifted BSE stock. Amid comments from Sebi chief Tuhin Kanta Pandey that the capital markets regulator may approve the much-awaited IPO of the National Stock Exchange (NSE) this month, shares of smallcap IFCI have rallied around 26% in the last one week alone. The PSU stock rallied over 10% to Rs 62.56 on BSE this morning, but is down 1% in the last six months. The NBFC holds an indirect stake in NSE via Stock Holding Corporation of India (SHCIL). At the end of the December quarter, SHCIL owned 4.4% in NSE. In the unlisted market, NSE shares are trading around Rs 2,100 per share. Going by that, SHCIL's stake in NSE is worth around Rs 23,000 crore. IFCI owns 52% stake in SHCIL. NSE IPO coming soon? Last week, Sebi chief had said that it is in a very advanced stage of issuing the NOC (no-objection certificate) for NSE IPO, and that could happen as soon as this month itself. At another event on Thursday, he said Sebi has agreed in principle to NSE's settlement application in the long-running unfair market access case. He also said the government has approved a 2.5% stake dilution in the exchange and that a notification in this regard will be issued soon. The development is being seen as the strongest signal yet that the country's largest stock exchange may finally move closer to an IPO. The NSE has been seeking regulatory approval for its IPO for several years, following governance lapses and the co-location controversy that had come under SEBI’s scrutiny. The exchange had first filed its draft red herring prospectus (DRHP) in December 2016, but the process was delayed amid regulatory action related to allegations of preferential access to its algorithmic trading platform. Live Events In August 2024, NSE reapplied to SEBI for a fresh no-objection certificate to proceed with its public issue. Subsequently, in October 2024, the exchange settled the Trading Access Point (TAP) architecture and network connectivity case by paying a penalty of ₹643 crore. The case pertained to alleged deficiencies in dealing with instances where certain high-frequency traders were found to be exploiting system access. Pandey said NSE has since undertaken several corrective measures, including changes in senior management, restructuring of its board, strengthening compliance frameworks, and settling past regulatory matters. NSE has an unusually large shareholder base for an unlisted company. With around 1,77,807 shareholders, it is India's largest unlisted company by number of investors. In the last few days, both prices and volumes of unlisted NSE shares have gone up. The stock commands a market capitalisation of around Rs 5 lakh crore in the unlisted space. Besides IFCI, investors are also betting that the other stock exchange, BSE, could also see a valuation re-rating post NSE’s listing. BSE shares have rallied around 6% in the last one week. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless For a future, Hindustan Copper is reviving what it junked in past FOMO or geopolitical safety net: What’s fuelling the gold ETF rush? Generous payouts come back to bite IT firms in the era of AI Scott Adams and the weasel-proof wallet Stock Radar: Coal India stock breaks out from Ascending Triangle range to hit fresh 52-week high in January 2026; time to buy? These mid-cap stocks with ‘Strong Buy’ & ‘Buy’ recos can rally over 25%, according to analysts 1 2 3