NIACL, IFCI shares tumble up to 14 pc as NSE IPO GMP falls
Shares of New India Assurance Company Ltd (NIACL) and IFCI fell by up to 14 per cent in Tuesday's trade as the grey market premium (GMP) of the National Stock Exchange (NSE) IPO declined sharply.
NIACL shares declined as much as 13.71 per cent to hit an intraday low of Rs 199.52, down from their previous close of Rs 231.20. At around 12 pm, the stock was trading 9.50 per cent lower at Rs 209.50 on the NSE.
In addition, NIACL holds a 1.42 per cent stake in NSE. However, the stock had gained nearly 30 per cent over the past few weeks on expectations surrounding the NSE IPO.
On the other hand, IFCI shares touched an intraday low of Rs 92.75, declining almost 10 per cent from their previous close of Rs 102.51. The stock was trading 8.11 per cent lower at Rs 94.16.
IFCI holds a 52 per cent stake in Stock Holding Corporation of India Ltd (SHCIL) which owns around 4.4 per cent in NSE. IFCI shares had gained as much as 40 per cent in the past few weeks before Tuesday's decline.
The GMP of the NSE IPO has witnessed a sharp correction in recent days, falling to Rs 221 on September 8 from Rs 310 on September 5.
Additionally, the Securities and Exchange Board of India (SEBI) issued an observation letter for the proposed Rs 30,000-crore initial public offering (IPO) of the National Stock Exchange earlier in September.
Apart from that, BSE Managing Director and CEO Sundararaman Ramamurthy said NSE had confirmed that it would not seek permission to trade on its own exchange after listing, according to reports.
The clarification followed reports that NSE could potentially trade on its own exchange under the permitted-to-trade (PTT) category.
