Being investors you all know that the Initial Public Offering (IPO) subscription of insurance giant Life Insurance Corporation of India (LIC) ended on May 9. Now all the bidders & also non-bidders are impatiently waiting for the share allotment. Most probably the LIC IPO share allotment date is May 12, 2022, i.e. tomorrow. However, the correcting movements of Grey Market Premium are raising doubts about the listing gains. As per the market experts, after the constant decrease, LIC IPO is flowing at the discount of ₹8 today in the Grey Market.
LIC IPO GMP- What Is It Indicating?
According to the market experts, the GMP is affected by the negative sentiments of secondary markets. Now the situation of LIC IPO grey market premium has reached the red zone after the constant dive. They asserted that the GMP today is minus ₹8, falling from the levels of ₹33 yesterday, now standing at ₹25. Ahead of the release of LIC IPO the grey market premium surged to ₹92, experts said. But due to the adverse effects of global secondary markets, the premium started falling from there.
Listing Expectations As Per GMP
Market practitioners suggest that as the GMP of LIC IPO is minus ₹8 today, the listing can take place around the levels of ₹941. So, the expectations are now becoming concerned that IPO may list moderately at a discount price.
As per the data, LIC IPO is subscribed 2.95 times. The policyholder share was subscribed 6.12 times, and 4.4 times subscribed employees share. Portions for both HNI and QIB are subscribed 2 times, while the retail portion was not able to generate many subscriptions to even get the bid two times overall. The performance of all the investors combinedly resulted in the bids worth ₹60,000 Cr for the ₹20,557 Cr IPO. This figure is not what experts were expecting, and due to this, the GMP of the Insurance giant slipped into the red zone.
MD & CEO, Axis Securities, B Gopkumar said, “We have seen this IPO acting as a stimulus in driving retail participation in equity markets. We continue to believe that the LIC will be a good long-term bet and will play well on the growth story of the underpenetrated insurance industry.”