Why IFCI Share Price is Rising

Today, 8 October, the Indian stock market is showing a mixed trend.

At the time of writing, the BSE Sensex is down by about 175 points at 81,747, and the NSE Nifty is down by around 67 points to 25,041.

However, broader indices like the BSE Midcap and Smallcap indices are trading in the green with some gains.

IFCI's share price has been in the limelight over the last few days. Since the beginning of the month, the stock is up 9%.

Let's tell you about some reasons for the same.

2 Reasons Why IFCI Share Price is Rising

#1 Strong Gains in PSU Stocks

There has been a strong buying interest in PSU stocks over the last few days.

The Nifty PSE index has jumped from 9,659 points on 26 September 2025 to 9,840 points on 8 October 2025.

The index itself has gained 2%, with a few stocks like IFCI showing even sharper gains.

#2 Company Outlines Growth Plans

The company's annual report was released recently on 6 October 2025, in a notification to the exchanges. In this, the company has clearly articulated plans for the future.

The annual report notes that the company has reduced its borrowing by 28%, which was backed by advisory income and recoveries.

IFCI has also continued its aggressive focus on resolution of stressed assets and non-performing assets (NPAs) by adopting multi-pronged strategies.

Some of the key highlights from the annual report may be one of the reasons for the stock to rally in the past two days.

What Next?

To make India self-sufficient, minimise import dependence, create global industrial champions within India and to 'Make in India for the world,' the Government of India has launched several Production Linked Incentive (PLI) schemes.

IFCI is the project management advisor for 10 out of the 14 PLI schemes. This should help the company generate revenues in the coming quarters.

IFCI Venture Capital Funds (IVCF), a subsidiary of IFCI, is promoting social sector initiatives of Government of India.

The Government of India has launched several 'First of their kind schemes' to support entrepreneurship among marginalised sections of the society.

The schemes managed by IVCF are Venture Capital Fund for Scheduled Castes (VCF-SC) including Ambedkar Social Innovation Incubation Mission (ASIIM), Venture Capital Fund for Backward Classes (VCF-BC), Venture Capital.

Stock Holding Corporation of India, a subsidiary of IFCI, is one of the largest Depository Participants. It also acts as a Central Record Keeping Agency (CRA) for collection of stamp duty, e-court fee and e-registration in various States and Union Territories (UTs).

There has been massive penetration of e-stamping across the country, which has not only contributed to financial gains by virtue of cost savings but has also curbed revenue leakage. The IFCI subsidiary is expected to benefit from this growth in e-stamping.

On the financial front, IFCI did well by reporting a net profit of Rs 624 m in Q1 FY26, from a loss YoY.

Overall, IFCI is in a recovery phase, supported by better earnings, improving asset quality, and government backing.

However, it still carries structural challenges as well as a dependence on India's PSU ecosystem.

Also, the shares of the company tend to be extremely volatile, which investors should consider.

How Shares of IFCI have Performed Recently

Over the last one month, the share price of IFCI has gained almost 10% from levels of Rs 53.25 to the current levels of Rs 59. In the past one year, shares of the company dropped 7%.

The stock hit a 52-week high of Rs 74.5 on 29 May 2025. The stock also hit a 52-week low of Rs 35.67 on 7 April 2025.

About IFCI

IFCI is a systemically important non-deposit taking NBFC in the public sector. It has a mandate to provide financial support for the diversified growth of Industries across the spectrum.

IFCI also provides government advisory services and corporate advisory services. In government advisory, IFCI has been appointed as a PMA for various PLI schemes launched under the aegis of "Atmanirbhar Bharat" by the Government of India.

IFCI is also the nodal agency for monitoring loans of the Sugar Development Fund.

To know more, check IFCI fact sheet and latest quarterly results.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...