New Delhi, Sep 8: Shares of New India Assurance Company (NIACL) and IFCI came under heavy selling pressure on Tuesday as enthusiasm around the upcoming National Stock Exchange (NSE) IPO weakened in the grey market.
NIACL and IFCI shares fell sharply during the session, with losses reaching around 12 per cent amid profit booking. Both stocks had rallied strongly in recent weeks as investors anticipated gains from their indirect exposure to NSE.
The NSE IPO received final regulatory approval from the Securities and Exchange Board of India (SEBI) last week, increasing expectations around what could become one of India’s largest public offerings. The proposed issue could be valued at around Rs 30,000 crore, although the final price band and issue dates have not yet been announced.
The recent decline in NIACL and IFCI shares came after the NSE IPO’s grey-market premium cooled. The premium reportedly dropped to around Rs 223 per share on September 8 from about Rs 285 earlier, signalling some moderation in investor enthusiasm.
IFCI has an indirect stake in NSE through Stock Holding Corporation of India, while New India Assurance holds a direct stake in the exchange. This exposure had made both stocks popular among investors looking to benefit from the much-awaited NSE listing.
The sharp movement in the two shares also reflects profit booking after their strong recent gains. IFCI had risen significantly over the past month, while NIACL also recorded a substantial increase during the same period.
The NSE IPO is expected to remain a major focus for investors in the coming weeks. However, market participants are likely to closely watch the official issue price, valuation and subscription response rather than relying solely on grey-market trends.
The latest movement highlights how expectations surrounding a major IPO can quickly influence related listed companies, particularly when investors have already priced in potential gains ahead of the actual issue.