IFCI shares fall 10% after sharp run-up; NSE IPO buzz and profit booking explained

IFCI shares, one of the top outperformers in recent sessions, came under intense selling pressure on Tuesday, September 8, as the stock tumbled.

NSE data show that the stock tanked as much as 10.12% to hit the day's low of ₹92.13.

The decline appears to be profit booking after the sharp recent run-up, rather than a fresh negative development specific to IFCI.

The stock had rallied strongly on NSE IPO expectations, with its valuation and indirect NSE exposure drawing increased investor attention.

Key details to know

IFCI has been in focus because of its indirect exposure to NSE. IFCI owns more than 50% of Stock Holding Corporation of India (SHCIL), which in turn holds more than 4% of NSE.

This has made IFCI shares sensitive to developments around NSE’s proposed IPO and expectations of value unlocking from its indirect holding.

The optimism intensified after SEBI approved NSE’s draft offer document, clearing a key regulatory hurdle for the exchange’s proposed IPO.

IFCI shares had risen more than 40% in a month and over 100% in 2026 before Tuesday’s decline.

NSE IPO: What market participants need to know

Last week, the National Stock Exchange of India Ltd (NSE) received regulatory approval for the long-awaited ₹30,000 crore initial public offering (IPO), which could potentially be the country's biggest-ever yet.

The Securities and Exchange Board of India (SEBI) issued an observation letter, effectively a clearance to the world's largest derivatives exchange to proceed with the IPO, according to an update on the regulator's website on Friday.

The public issue is likely to be launched on September 15 with the exchange targeting a listing on September 24-25, the report added, quoting sources.

The listing is targeted before the Pitru Paksha period begins on September 26.

The IPO, which will see light after nearly a decade of regulatory delays, will place NSE among India's 10 most valuable companies by market capitalisation.

About IFCI

IFCI Ltd (IFCI) was set up as a Statutory Corporation (“then Industrial Finance Corporation of India”) in 1948 for providing medium- and long-term finance to industry.

In 1993, after the repeal of the Industrial Finance Corporation Act, IFCI became a public limited company, registered under the Companies Act, 1956.

IFCI is also registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit taking Non-Banking Finance Company (NBFC-ND-SI) and is also a notified Public Financial Institution under Section 2(72) of the Companies Act, 2013.

A decade-long saga

NSE's path to market has been one of India's longest-running corporate sagas.

The exchange first filed for an IPO in December 2016, only to see the process repeatedly derailed by a co-location scandal involving allegations that select brokers were given preferential, low-latency access to its trading systems, along with related governance lapses that drew sustained regulatory scrutiny.

NSE sought SEBI's no-objection certificate - the mandatory clearance market infrastructure institutions must obtain before filing an IPO - multiple times over the years, including attempts in 2019, 2020 and 2024, before finally securing it earlier this year.

A listing would crown a remarkable turnaround for an exchange that, as recently as a decade ago, was mired in litigation and reputational damage.

NSE: What you need to know

The National Stock Exchange of India (NSE) is India's largest stock exchange by equity cash-market turnover and one of the world's largest derivatives exchanges by trading volume.

Established in 1992, NSE began operations in 1994 and operates across equities, equity derivatives, currency derivatives, commodities, fixed income, indices, and other market segments.

As of March 31, 2026, NSE accounted for about 93% of India's equity cash-market turnover and 99.8% of equity futures turnover.

It also operates the benchmark NIFTY50 index and provides clearing, settlement, market-data, and other market infrastructure services.