NSE IPO: Shares of IFCI Ltd surged on Friday, March 13 after the National Stock Exchange (NSE) moved a step closer to its much-anticipated initial public offering (IPO) by appointing merchant bankers and legal advisors for the issue.
The stock climbed as much as 10.75% to ₹59.84 on the BSE, gaining investor attention after the exchange announced the appointment of 20 merchant bankers and eight law firms to manage its public offering.
The development has sparked optimism among investors as IFCI has an indirect exposure to the NSE through its shareholding structure. Market participants believe that the eventual listing of the exchange could potentially unlock value for stakeholders connected to NSE.
How IFCI benefits from the NSE IPO
IFCI is a government-owned financial institution that provides financial assistance to corporates across a wide range of sectors. Over the years, the institution has played a significant role in funding infrastructure and industrial development projects.
The connection between IFCI and the NSE lies in its holding structure. IFCI owns a majority stake of 52.86% in Stock Holding Corporation of India Ltd (SHCIL). In turn, SHCIL holds a 4.4% stake in the National Stock Exchange.
Because of this indirect ownership, any value unlocking that occurs when NSE lists on the stock exchanges could have a positive impact on the valuation of Stock Holding Corporation of India and, consequently, IFCI.
Currently, Life Insurance Corporation of India (LIC) is the largest shareholder in the NSE with a 10.72% stake. Other notable shareholders include Aranda Investments Mauritius (4.54%), Stock Holding Corporation of India (4.44%), SBI Capital Markets (4.33%), and Veracity Investments (3.93%).
The NSE’s IPO has long been anticipated in the Indian capital markets, and the recent appointment of advisors indicates that the process is gradually gaining momentum.
NSE’s IPO process gathers pace
In a recent press release, NSE announced that it had selected 20 merchant bankers to manage the IPO process. The list includes major investment banks and financial institutions such as JM Financial, Axis Capital, IIFL Capital Services, Motilal Oswal Investment Advisors, ICICI Securities, SBI Capital Markets, Nuvama Wealth Management, HDFC Bank, Avendus Capital Private, Morgan Stanley India Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), IDBI Capital Markets & Securities, 360 ONE WAM, Anand Rathi Advisors, DAM Capital Advisors, Pantomath Capital Advisors, and Equirus Capital.
In addition, eight law firms have been selected for legal advisory roles in the IPO. These include Cyril Amarchand Mangaldas, Khaitan & Co, Latham & Watkins LLP, Sidley Austin Singapore Pte. Ltd., AZB & Partners, S&R Associates, Shardul Amarchand Mangaldas & Co, and Trilegal.
NSE is likely to sell around 4–4.5% stake through the IPO, and the listing process could take up to eight months, according to comments made by NSE chief executive officer Ashish Kumar Chauhan last month.
Post this development, in the unlisted market, prices of NSE have increased around 0.5%-1% and are hovering around the 1980-2010 range. It’s expected that NSE will continue to be in the spotlight for the next few months considering it may be the biggest IPO of 2026, said Vijay Kuppa, CEO, InCred Money.
IPOs in 2026
The proposed IPO is expected to be among the major listings in the upcoming pipeline of public offerings. Several large companies are also planning to tap the primary market in 2026, including Reliance’s Jio Platforms, SBI Funds Management, digital payments firm PhonePe, and e-commerce major Flipkart.
These expected listings follow a strong year for India’s primary market in 2025, when 371 companies collectively raised more than ₹1.75 lakh crore through IPOs, including major offerings from HDB Financial Services Ltd, LG Electronics India Ltd and ICICI Prudential Asset Management Co.
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