LIC IPO: The initial share sale of the country’s insurance behemoth Life Insurance Corporation (LIC) was recently concluded after six days of bidding. The share allotment of the LIC IPO (initial public offering) was also done recently, whereby investors were able to check whether they had won bids for the LIC IPO. However, after the share allotment got concluded, the gray market premium has declined and shares are now trading at a discount. The price band of the LIC IPO was fixed at Rs 902 to Rs 949 per equity share.
LIC IPO GMP Today
The unlisted shares of the LIC IPO nosedived in the negative zone in the gray market a few days back, and there has been no coming back from that yet. LIC IPO GMP (grey market premium) is still negative, according to market observers. The LIC IPO GMP today is minus Rs 20, according to them, which is Rs 5 higher than yesterday’s gray market premium. Market observers maintained that LIC IPO GMP has remained in the negative zone for the fourth successive day, which is a bad sign for the listing of India’s largest public issue.
What This GMP Mean?
Gray market premium or GMP is a premium amount paid at which initial public offering (IPO) shares are traded before it is listed on the stock exchanges. The LIC IPO GMP today is minus Rs 20, which is Rs 5 higher than yesterday when it was minus Rs 25. This means that the gray market is expecting that LIC IPO listing may happen around Rs 929 (Rs 949 – Rs 20), which is around 2 per cent lower from its price band of Rs 902 to Rs 949 per equity share.
LIC IPO Issue Price
The LIC on Friday set an IPO issue price of 949 per share, at par with the upper end of the price band, despite the falling GMP. The LIC IPO received 47.83 crore bids as against the offer size of 16.21 crore. The price band of LIC IPO was fixed at Rs 902-949 per share and the company offered a discount of Rs 60 per share for its policyholders and Rs 45 a piece for retail investors and LIC employees.
LIC IPO Listing Date
As the share allotment has been done, investors will now have the question — when is the listing date of LIC IPO? The LIC IPO listing date is on May 17, when the shares will debut on both NSE and BSE. Prior to that, the shares will be credited to winning bidders’ demat accounts on May 16. Investors who did not win the bid have in all probability received their refund.
LIC IPO: What Investors Should Know
Although the LIC IPO GMP has been in the negative zone for a few days, investors must know that this is not the ultimate price during listing. Gray market premium can be easily manipulated, but can also come as an indication of how a stock is going to perform. “The financial behavior got a mixed response despite attractively priced valuations on account of subdued market conditions. The current sentiments indicate at par to discount listing, however, if market sentiments stabilizes or improves till listing, we may see a positive impact. Hence, one should limit their expectations as far as listing gains are concerned,” said Abhay Doshi, CEO of Unlisted Arena.
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