The scrip of Industrial Finance Corporation of India (IFCI) rallied 14% on Thursday after the country’s biggest stock exchange – the NSE – filed its draft prospectus with the Sebi for a Rs 10,000-crore initial public offering (IPO). IFCI holds around 3.05% stake in the NSE.
The IFCI stock hit a three-month high and closed at Rs 28, up 13.36%, on the BSE. The stock gained more than 20% in the past one month from Rs 23.35 a share on November 30.
As the markets opened on Thursday, a spurt in the volume was witnessed – the volume increased by 6.5 times the last two weeks’ average of 14.95 lakh to 96.55 lakh.
Like other financial companies, IFCI’s stock price fell after the government’s demonetisation measures. Between November 8 and November 21, the stock price dropped by around 12%. However, since November 21, the price went up 30%.
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Last week, IFCI informed the BSE that the company had changed its short-term benchmark rate (IBR-ST) from 8.50% annually to 8.60% with monthly rests for lending for tenure of up to three months.
Earlier this month, private sector lender Axis Bank had completed acquisition of a 13.67% stake in Assets Care and Reconstruction Enterprise from IFCI for Rs 22.72 crore.