Life Insurance Corporation of India or LIC IPO shares are going to be listed on the stock exchanges and will be available to trade from tomorrow. Initial Public Offering of LIC was subscribed almost three times as compared to the original issue size. The price band of the LIC stocks per share was between ₹902-949, now the Government has set the issue price per share at ₹949. With the upper price band, the Government planned to raise around ₹20,557 Cr.
Current GMP of LIC IPO
As per the market spectators, today the LIC IPO shares are continually being traded at the discounted price of ₹19 in the grey market. The current GMP of LIC IPO suggests that the shares listing tomorrow may see a moderate to low drop in price.
UnlistedArena, Founder, Abhay Doshi, suggests that “The financial behemoth 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 stabilise or improve till listing, we may see a positive impact. Hence, one should limit their expectations as far as listing gains are concerned.”
The Initial Public Offering sale of insurance giant LIC ended on May 9 for all the investors and the allotment process began on May 12. The Government as planned sold its 3.5 per cent stake or 22.13 Cr in the insurance company. Sold through the IPO for which the price band was decided between ₹902-949 per share.
A discount of ₹45 was allowed for the investors of employee and retail categories of LIC. On the other hand, the customers who have purchased one or more than one policy of LIC were able to avail of the discount of ₹65 a share. So, the policyholders purchased the IPO at ₹889 per share and retail investors purchased the IPO at ₹902 a share.
Initial Public Offering ended with almost three times subscriptions, heightened by the retail and anchor investors. But this time the effect of foreign investors remained unnoticed.
Now the Government has offered 3.5 per cent of its stake to the investors, meaning it diluted that much through IPO. They reduced their stake offering from 5 per cent to 3.5 per cent after analysing the market sentiments.