2 hrs ago
NIACL, IFCI Shares Tumble as NSE IPO Grey Premium Falls
Shares of New India Assurance Company Limited and IFCI fell sharply on Tuesday.
Investors had expected the National Stock Exchange IPO to benefit these companies because they have indirect or direct stakes linked to the exchange.
New India Assurance Company Limited owns 1.42% of the National Stock Exchange.
IFCI owns 52% of Stock Holding Corporation of India Limited, which owns about 4.4% of the exchange.
The IPO’s grey market premium dropped from Rs 310 on September 5 to Rs 221 on September 8.
This decline weakened investor excitement about the IPO.
The Securities and Exchange Board of India has issued an observation letter for the proposed IPO.
The National Stock Exchange also reportedly said it would not seek permission to trade on its own exchange after listing.
New India Assurance Company Limited shares fell 13.71% to an intraday low of Rs 199.52.
IFCI shares declined nearly 10% to Rs 92.75 during Tuesday’s trading session.
The National Stock Exchange IPO’s grey market premium fell to Rs 221 on September 8 from Rs 310 on September 5.
New India Assurance Company Limited owns 1.42% of the National Stock Exchange, while IFCI controls 52% of Stock Holding Corporation of India Limited.
The Securities and Exchange Board of India issued an observation letter for the proposed Rs 30,000-crore National Stock Exchange IPO.
- Who
- New India Assurance Company Limited, IFCI, the National Stock Exchange, the Securities and Exchange Board of India, and BSE Managing Director and CEO Sundararaman Ramamurthy.
- What
- Shares of New India Assurance Company Limited and IFCI fell as the grey market premium for the National Stock Exchange IPO declined.
- Where
- Mumbai, with trading on the NSE.
- When
- Tuesday’s trading session; the grey market premium fell between September 5 and September 8.
- Why
- Investor expectations weakened after the National Stock Exchange IPO’s grey market premium dropped sharply.
Key facts
- New India Assurance Company Limited decline
- Down as much as 13.71% to Rs 199.52; it was down 9.50% at Rs 209.50 around noon.
- IFCI decline
- Down almost 10% to Rs 92.75; it was down 8.11% at Rs 94.16.
- NSE IPO grey market premium
- Fell to Rs 221 on September 8 from Rs 310 on September 5.
- Proposed IPO size
- Rs 30,000 crore.
- New India Assurance Company Limited stake
- The company holds a 1.42% stake in the National Stock Exchange.
- IFCI-linked stake
- IFCI owns 52% of Stock Holding Corporation of India Limited, which owns around 4.4% of the National Stock Exchange.
- Recent prior gains
- New India Assurance Company Limited had gained nearly 30%, while IFCI had gained as much as 40% in recent weeks.
Sources
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