IFCI Ltd. shares extended their upward trajectory for the second consecutive session on Tuesday, demonstrating strong momentum in the PSU stock. The company's shares gained significant ground during intraday trading, reflecting sustained investor interest.

Recent Trading Performance

The stock's performance over the recent trading sessions has been particularly noteworthy:

Session-wise Analysis

Tuesday's trading session saw IFCI shares climb 5.60% during intraday hours, building upon the substantial gains recorded in the previous session. This performance followed Monday's impressive rally, where the stock had surged over 15%, marking one of the stronger single-day performances for the PSU entity.

Market Data Confirmation

According to NSE data, the cumulative price appreciation across both trading sessions exceeded 20%, highlighting the significant momentum in IFCI's share price. The consecutive sessions of gains indicate sustained buying interest in the stock, with the two-day rally representing a notable short-term price movement for the financial services company.

The sustained upward movement across two consecutive sessions demonstrates the stock's current market dynamics, with both Monday's substantial 15% gain and Tuesday's continued 5.60% intraday appreciation contributing to the overall positive trajectory.

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.