NIACL, IFCI shares jump 12% on NSE IPO buzz
What's the story
The National Stock Exchange (NSE) is reportedly gearing up to launch its initial public offering (IPO) this month. The news has led to a surge in the share prices of companies with stakes in the exchange. Shares of New India Assurance Company Ltd (NIACL) and IFCI Ltd jumped as much as 12% during Wednesday's trading session amid speculation over NSE's upcoming IPO.
Market reaction
IFCI hit a high of ₹97.72
IFCI, a public sector non-banking financial company (NBFC), witnessed its shares rise 12% to hit a high of ₹97.72 per share on the NSE.
The company owns a 52% stake in Stock Holding Corporation of India Ltd (SHCIL), which has a 4.4% stake in NSE.
Meanwhile, NIACL's shares also jumped by 6.8%, reaching ₹198.50 per share during Wednesday's trading session, amid the same IPO speculation.
SBI's move
SBI to dilute up to 1% stake in NSE
State Bank of India (SBI) and its subsidiary SBI Capital Markets Ltd are planning to dilute up to 1% stake in NSE via the proposed ₹30,000-crore IPO.
SBI Chairman C S Setty confirmed this plan in an interview with PTI.
Currently, SBI owns a 3.23% stake in NSE while SBI Capital Markets holds a 4.33% stake.
Fundraising potential
NSE's proposed issue could surpass Hyundai India's IPO
The NSE has pitched its shares at ₹2,000-2,100 per share to prospective investors, Bloomberg reported.
At the upper end of the range, NSE would be the sixth largest exchange operator by market capitalization globally.
If valued at $55 billion (₹5.26 lakh crore), a 6% stake sale could fetch about ₹31,500 crore for NSE.
This would top ₹27,870 crore raised by Hyundai Motor India in 2024 to become the nation's biggest IPO on record.