IFCI shares surged to a two-month high on Tuesday, extending gains for the second consecutive session amid growing expectations around the National Stock Exchange's upcoming initial public offering. The non-banking financial company's stock performance reflects investor optimism about potential benefits from NSE's anticipated market listing.

Stock Performance Highlights

IFCI's shares demonstrated strong momentum during Tuesday's trading session, with significant price appreciation and elevated trading volumes.

The stock reached ₹59.60 during intraday trading, marking its highest level since October 31. Despite paring some gains, IFCI closed 2.68% higher at ₹57.97, significantly outperforming the NSE Nifty 50 Index, which declined 0.25% during the same period.

NSE IPO Connection

The rally in IFCI shares stems from the company's indirect stake in the National Stock Exchange through Stock Holding Corporation of India. Securities & Exchange Board of India chief Tuhin Kanta Pandey indicated on Saturday that NSE is likely to receive a no-objection certificate from the regulator for its public issue by the end of this month.

According to NSE shareholder information, Stock Holding Corporation of India holds a 4.4% stake in the exchange. Crucially, IFCI received approval in 2024 to merge Stock Holding Corporation of India into itself, effectively giving IFCI an indirect stake in NSE.

Financial Impact Assessment

ICRA highlighted the potential benefits of this arrangement in a December 2024 report, stating that "IFCI will benefit from the sizeable stake held by Stock Holding Corporation (SHCIL) in the National Stock Exchange, thus improving its financial flexibility." This assessment underscores the strategic value of IFCI's position ahead of NSE's anticipated public listing.

Company Background

IFCI operates as a non-deposit taking, non-banking financial company in the public sector. Established in 1948 as a statutory corporation, the company is mandated to provide support for the diversified growth of industries across India.

The company has provided financial support to significant infrastructure projects, including Adani Mundra Ports, GMR Goa International, Salasar Highways, NRSS Transmission, and Raichur Power Corp. Additionally, IFCI serves as the nodal agency to monitor loans for the Sugar Development Fund since 1984.

IFCI Limited has received an income tax rectification order under Section 154 of the Income Tax Act, 1961, creating an additional tax demand of ₹13.64 crores. The company disclosed this development to stock exchanges on January 06, 2026, in compliance with SEBI listing regulations.

Tax Order Details

The Assistant Commissioner of Income Tax issued the order under Section 154 read with Section 143(3) of the Income Tax Act, 1961. The additional demand stems from the department's decision to reduce brought-forward losses in the computation of income for Assessment Year 2019-20.

Company's Response and Legal Position

IFCI Limited has indicated that the original assessment order and demand for Assessment Year 2019-20 is already under appeal before the Commissioner of Income Tax (Appeals). The company has successfully obtained a stay against the existing demand and plans to file an application for stay against this additional demand as well.

The rectification order specifically addresses the reduction of brought-forward losses in the income computation, which has resulted in the increased tax liability for the company.

Financial Impact Assessment

Despite the substantial additional demand, IFCI Limited has assessed that there will be no material impact on its financial position. The company has disclosed that it maintains sufficient Minimum Alternate Tax (MAT) credit that can be utilized to absorb the additional demand.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III Para A Part A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary Priyanka Sharma signed the regulatory filing, ensuring compliance with mandatory disclosure requirements for listed entities.

The company emphasized that while the additional demand represents a significant amount, the availability of MAT credit provides adequate protection against immediate financial impact, allowing normal business operations to continue without disruption.