LIC IPO GMP Today: Life Insurance Corporation (LIC), which recently completed India’s largest-ever public offering, completed its share allotment process on May 12. However, the gray market signals are not very encouraging. According to market observers, LIC’s share price is trading at a discount of Rs 25 in the gray market today. According to market observers, the price of the LIC share is trading at a discount of Rs 25 in the gray market today. They said that LIC IPO GMP (Grey Market Premium) has been in the negative zone for the third consecutive day, which cannot be considered a good development before the listing date.
LIC IPO Latest GMP today
Market observers following LIC gray market shares said the LIC IPO GMP today is minus Rs 25, meaning the price of the LIC IPO gray market has been almost stable for the past 24 hours. LIC IPO GMP yesterday was minus Rs 26. Prior to the opening of the LIC IPO subscription, shares of the insurer were available on the gray market at a premium of Rs 92. So in almost 10 days, the LIC IPO GMP is down by about 125 percent decreased. Market observers said the negative trend in secondary markets has wreaked havoc on gray market sentiment regarding LIC’s IPO. They said that since the opening of the LIC IPO, the mood in the stock market around the world has remained bearish and that this could be the main possible reason for the fall of the LIC IPO GMP.
LIC IPO: what does GMP mean?
Gray market is an unofficial market where individuals buy/sell IPO shares before they officially come on the exchanges. GPM is a premium amount at which IPO stocks trade on the gray market and reflects how the IPO is likely to react on the day of listing. Trade analysts believe the not-so-encouraging response the IPO received from foreign and institutional investors is the main reason behind its waning gray market appeal. The deterioration in the Indian and global markets further added to the selling pressure in the unofficial market.
However, stock market experts said the gray market premium is not an ideal indicator of the success or failure of a public issue. They said that GMP is an unofficial data, which is also unregulated. Thus, one should look at the company’s balance sheet rather than gray market sentiment, as the company’s financials provide a better and more concrete fundamental picture of the company.
Speaking about the LIC GMP, Abhay Doshi of Unlisted Arena said: “The financial giant received mixed reactions despite attractively priced valuations due to subdued market conditions. Current sentiments indicate that these are similar to discount quotes, but if market sentiments stabilize or improve until quotes, we could see a positive impact. Therefore, one should limit their expectations regarding the profit on the list.”
The LIC IPO shares are expected to be listed on public exchanges on May 17, 2022. LIC IPO has been subscribed 2.95 times on the last day in what can be seen as a healthy response from investors, although FII participation has remained subdued. The IPO received bids for 47.83 crore shares against 16.2 crore shares being tendered. The policyholder has subscribed 6.11 times, while the employee share has bid 4.39 times. The offer from private investors was subscribed for 1.99 times and the share of non-institutional investors was subscribed for 2.91 times.
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