IFCI holds a 52% stake in Stock Holding Corporation of India (SHCIL), which owns 4.4% of NSE as of the December quarter. With NSE shares quoted around Rs 2,100 in the unlisted market, SHCIL’s stake is valued at close to Rs 23,000 crore. Through its holding in SHCIL, IFCI enjoys indirect exposure to NSE, making its stock highly responsive to IPO-related developments.
NSE IPO Expected Soon: Sebi chairperson Tuhin Kanta Pandey said the regulator could greenlight the much-awaited NSE IPO as soon as this month, adding that the process for issuing the no-objection certificate (NOC) is in its final stages.
Pandey also asserted that Sebi has agreed in principle to NSE’s settlement application in a long-standing unfair market access case. Additionally, the government has approved a 2.5% stake dilution in NSE, with an official notification expected shortly. Analysts view these developments as strong signals that the country’s largest stock exchange is moving closer to listing publicly.
The stock has seen notable swings in recent periods. While it has gained about 11% over the past year, its performance over the last three years has been far stronger, delivering a surge of more than 365% and highlighting robust long-term growth.
From a valuation standpoint, IFCI trades at a price-to-earnings (P/E) ratio of 43.07, a price-to-sales (P/S) ratio of 6.19, and a price-to-book (P/B) ratio of 1.08. These metrics suggest that the stock is priced relatively high compared to its earnings and sales but is closer to its book value, indicating moderate market valuation.
Trendlyne data suggests the stock is exhibiting bullish momentum. Its 14-day Relative Strength Index (RSI) stands at 68.3, slightly below the 70 level that generally indicates overbought conditions, while readings under 30 signal oversold territory. Additionally, the stock is trading above all eight of its simple moving averages (SMAs), underscoring the prevailing positive trend.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)