IFCI gains on receiving bids for NSE stake

IFCI rose 2.01% to Rs 7.12 after the company said it received bids for sale of its entire stake in the National Stock Exchange of India (NSE).

IFCI plans to divest its entire stake of 1.20 crore shares, or 2.44% equity, in NSE. The sale will be subject to obtaining consent/no-objection of NSE and any other approval, required as per law. The announcement was made after trading hours yesterday, 2 December 2019.

Meanwhile, the S&P BSE Sensex was down 134 points or 0.33% to 40,668.

In the past one month, shares of IFCI slumped 15.63% to its current market price of Rs 7.12, underperforming the Nifty Finance Service index's 3.40% rise in the same period.

On the technical front, the stock's RSI (relative strength index) stood at 46.292. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading below its 50-day moving average (DMA) placed at Rs 7.23, as well as below its 200 DMA placed at Rs 9.40.

IFCI reported a consolidated net profit of Rs 32.33 crore in Q2 September 2019 as compared to a net loss of Rs 5.53 crore in Q2 September 2018. The consolidated total income fell 23.9% to Rs 709.52 crore in Q2 September 2019 over Q2 September 2018.

IFCI is a non-banking financial company (NBFC) engaged in the business of financing companies. The company is also engaged in providing other credit granting services. Its products and services include financial products and corporate advisory services. Its financial products include debt segment and equity segment.

As of 30 September 2019, the Government of India held 56.43% stake in the company.

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