New India Assurance and IFCI Shares Surge Ahead of NSE IPO Approval
Shares of New India Assurance and IFCI jumped up to 17% and 12% respectively on the BSE, driven by speculation that the NSE IPO will soon receive SEBI clearance.
On Friday, New India Assurance Company’s shares rose 17% on the BSE, hitting a 52-week peak of ₹229.30, while IFCI’s stock surged 12% to a multi-year high of ₹107.45, both on markedly increased trading volumes. The moves come as investors anticipate regulatory approval for the National Stock Exchange’s initial public offering, which could unlock value for shareholders holding stakes in the exchange. IFCI controls a 52.86% stake in Stock Holding Corporation of India Limited, the central record-keeping agency that owns a 4.44% share of the NSE, and New India Assurance holds a 1.42% direct stake in the exchange.
SEBI Chairman Tuhin Kanta Pandey signaled that the board is close to clearing the draft red herring prospectus, a step that could trigger the IPO slated for the second half of September. The offering is expected to comprise up to 148.9 million shares, representing about 6% of the NSE’s paid-up capital, with proceeds directed to existing shareholders rather than the exchange itself. One outlet estimates the IPO could value the NSE at up to ₹5.26 trillion ($55 billion).
Why it matters
The stock surge signals market expectations that the NSE IPO could unlock significant value for major shareholders.
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