The registrations for the IPO registrations on LIC closed on 9 May. Investors who had bid on IPO shares must now eagerly await the IPO share allocation of the country’s largest insurance company. However, ahead of the LIC IPO allotment, gray market sentiment regarding the insurance giant’s Initial Public Offering (IPO) has moved further south. After diving into the negative zone on Wednesday, the LIC IPO GMP (grey market premium) fell further today.
What is the current GMP of LIC IPO?
According to market observers, LIC shares are available today at a discounted price of Rs 26 in the gray market. Market observers said LIC IPO GMP today is minus Rs 26, which is Rs 18 lower than yesterday’s gray market premium of minus Rs 8. Market observers claimed that LIC IPO GMP has remained in the negative zone for the second consecutive day, which is not a good sign for India’s biggest public issue as it is just days away from listing. They said negative secondary market sentiment has hurt gray market sentiment regarding LIC’s IPO.
What does GMP mean?
Gray market premium or GMP is an amount of premium paid at which shares of the publicly traded exchange (IPO) are traded before being listed on the exchanges. Market observers said LIC IPO GMP is today minus Rs 26, meaning the gray market expects LIC IPO listing to take place around Rs 923 (Rs 949 – Rs 26), which is about 3 percent lower than the price range of Rs 902 to Rs 902. Rs 949 per share of share.
However, stock market experts suggested to investors that GMP is unofficial, unregulated. So those who follow GMP are advised to also go through the financial records of the company as the balance sheet of the company will give a better idea of the fundamentals 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 point to a discount quote comparison, but if market sentiment stabilizes or improves to quote, we could see a positive impact. Therefore, one should limit their expectations regarding the profit on the list.”
LIC IPO Details
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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