This also marked the stock’s biggest single-day rise since June 12, when it had surged 20%.
The surge in the stock comes ahead of the potential NSE IPO, which could be launched soon.
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said late last month that the regulator was “very close” to approving NSE’s draft red herring prospectus (DRHP) for its initial public offering (IPO).
Stock Holding Corporation of India, a subsidiary of IFCI, holds a 4.4% stake in NSE. CNBC-TV18 had reported earlier this year in May that the Stock Holding Corporation of India was expected to offload around 0.44% stake in the IPO, indicating a partial dilution. At an assumed valuation of ₹5 lakh crore, the sale was said to fetch the subsidiary roughly ₹2,200 crore.
IFCI holds a 52.66% stake in Stock Holding Corporation of India.
The company’s shares have surged almost 80% since the start of the year, with a similar rise recorded over the trailing 12-month period.
More than 13 crore shares of the company changed hands during intraday trade, 2.68 times the stock’s 10-day average volume. The stock closed in the green in six of the previous 10 trading sessions.According to the company’s latest shareholding data, 72.57% of its total shares were held by the Government of India, while the rest belonged to public shareholders. Other institutional investors in the stock include Life Insurance Corporation of India (LIC), which holds 1.48% of total shares, and Vanguard Capital Management, which holds 1.17%.
Among public shareholders, over 86,000 small retail shareholders, or those with authorized share capital of up to ₹2 lakh, had a 12.92% stake in the company, while those with authorized share capital in excess of ₹2 lakh also had a 12.65% stake in the company. Investor Ashish Dhawan’s name also appears in the shareholding, with a 2.17% stake. The International Finance Corporation has a 6.07% stake.
CARE Edge Ratings Limited reaffirmed its credit rating of ‘CARE BB’ for various debt facilities of IFCI Limited last month, with the rating action continuing to be on “Rating Watch with Developing Implications” (RWD), according to a regulatory filing.
The rating covered five specific categories of instruments, including infrastructure bonds, long-term bank facilities, non-convertible debentures, subordinated bonds, and unsecured redeemable bonds.
Also Read: Samir Arora: Four reasons why India’s market setup has improved
Shares of IFCI are trading 8.9% higher on Wednesday, bucking the trend in a weak market at ₹95. The stock is now up 80% so far this year.
