The upcoming IPO of the National Stock Exchange (NSE) may unlock significant value for public sector undertakings—but none may benefit more than IFCI Ltd. A development finance institution turned public sector NBFC, IFCI holds a 52.86 percent stake in Stock Holding Corporation of India (SHCIL), which in turn owns 4.4 percent of NSE. At the stock exchange's current unlisted valuation of Rs 5.7 lakh crore, SHCIL’s stake is worth close to Rs 25,000 crore. Based on this calcualtion close to Rs 13,000 crore is the value of NSE shares which IFCI can directly have post merger of Stock Holding corporation in it.
In November 2024, the department of financial services (DFS) granted IFCI 'in-principle' approval to consider the merger of SHCIL and other subsidiaries into IFCI. If this restructuring leads to a direct unlocking of IFCI’s NSE holding, it could provide the financial firepower needed for the institution to revive its lending business, which has been halted since FY22 due to high levels of non-performing assets (NPAs). The management has since focused on advisory services.
According to ICRA’s December 2024 rating note, “IFCI will benefit from the sizeable stake held by Stock Holding Corporation (SHCIL) in the National Stock Exchange, thus improving its financial flexibility.” As per IFCI’s March 2025 financials, its standalone borrowings stood at Rs 3,714 crore, while group companies remained largely debt-free.
In the winter session of Parliament, the government sought approval for a Rs 500 crore capital infusion into IFCI, aimed at strengthening its financials ahead of the proposed restructuring. The DFS has also directed IFCI management to initiate the restructuring process.
The Restructuring Plan
IFCI announced in November 2024 that it had received communication from DFS granting approval to consolidate the IFCI Group. The plan involves:
Merger/amalgamation of SHCIL, IFCI Factors Ltd, IFCI Infrastructure Development Ltd, and IIDL Realtors Ltd with IFCI. The consolidated entity will continue under the name IFCI Ltd.
Broking businesses such as Stock Holding Services Ltd, IFCI Financial Services Ltd, IFIN Commodities Ltd, and IFIN Credit Ltd will be merged into a single entity and operate as a direct subsidiary of IFCI Ltd.
Other entities like Stock Holding Document Management Services Ltd, Stock Holding Securities IFSC Ltd, IFIN Securities Finance Ltd, IFCI Venture Capital Funds Ltd, and MPCON Ltd may continue as direct subsidiaries of the new IFCI.
Financial Performance
For the quarter ended March 31, IFCI reported net sales of Rs 205.27 crore, down 46.39 percent from Rs 382.89 crore in March 2024. However, net profit rose 26.46 percent to Rs 272.54 crore, from Rs 215.51 crore a year ago. EBITDA increased to Rs 520.23 crore, up 8.21 percent from Rs 480.78 crore. The improved profitability was largely driven by recoveries and sale of assets, many under IBC proceedings.
NSE’s IPO Progress
Meanwhile, NSE is actively pursuing a consent settlement with SEBI in relation to its co-location and dark fiber cases. On June 20, the exchange filed its consent application and has agreed to pay Rs 1,388 crore. If the settlement goes through, SEBI may issue a No-Objection Certificate (NOC) by the end of July or mid-August.
Post-NOC, the process for filing the Draft Red Herring Prospectus (DRHP) will take another 4–5 months, since each quarterly number will need to be audited. An additional 2–3 months may be required for merchant banker queries and final approvals. Market experts estimate that, if all goes smoothly, NSE could list in the last quarter of FY26.
The timing could be crucial for IFCI. A successful NSE listing—combined with the approved restructuring—could provide the institution with much-needed capital, allowing it to transition from a stressed lender into a revitalised financial entity.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
