IFCI shares fall 4% on reports of lower price band for NSE IPO

IFCI Ltd shares experienced a decline of over 4% on Wednesday following reports indicating the National Stock Exchange (NSE) may price its initial public offering below initial projections and reduce the stake available in the issue. At 9:27 am, IFCI's shares were trading 4.01% lower at Rs 88.90 on the NSE, compared to their prior close of Rs 92.61. The stock made its debut at Rs 92.50, peaking at Rs 93.56 and subsequently declining to an intraday low of Rs 88.31.

The performance of IFCI lagged behind the broader market, as the Nifty 50 slipped approximately 0.5% during the same timeframe. Reports suggest that NSE plans to price its IPO within a range of Rs 1,700 to Rs 1,785 per share, which is lower than the previously advertised band of Rs 2,000 to Rs 2,100. If the upper limit of the proposed band is adopted, the exchange would be valued at approximately Rs 4.4 lakh crore, or $46.4 billion.

Moreover, NSE may lower the stake offered to around 5.5% of its equity capital, down from the initially planned 6%. IFCI, which owns over 50% of Stock Holding Corporation of India (SHCIL), holds more than 4% of the exchange. Consequently, developments impacting NSE's valuation have implications for the worth investors attribute to IFCI's indirect stake in the company. NSE did not provide a response to Reuters' request for clarification on the reported price range.

Despite the decline, IFCI shares have increased by 20.22% over the past month, surpassing the Nifty 500, which fell 2.95% during the same period. The stock also rose around 68% year-to-date.