4th May 2022 was the opening day for the LIC IPO or Initial Public Offering and the last day for subscribing to the largest IPO ever in the history of the stock market is May 9, 2022, i.e. today. If we talk about the 5 days subscription status then it has been subscribed 1.59 times by retail investors, 1.79 times the public issue has been subscribed till now. The influence on LIC employees and policyholders is far greater as the IPO is subscribed 5.04 times and 3.79 times respectively by them.
GMP Current Figures
The bear movement of the Share Market is constantly taking its toll on the Grey Market Premium (GMP) of the LIC in the stock market. As per the market spectators, the grey market is witnessing the availability of LIC shares at the premium of ₹36 today.
As per the market practitioners, the grey market premium is currently at ₹36 which is far lower than the GMP price of ₹60 yesterday. This is a decrease of ₹24, in fact, the market premium is constantly decreasing from the figure of ₹92 since the start of bear movements in the stock market. According to them, the secondary market across the world is facing a major sell-off and our Indian Stock Market cannot escape from it. That’s why the grey market premium is getting adversely affected from the start.
What GMP Is Indicating?
As per the market spectators, the grey market premium of LIC IPO currently stands at ₹36, meaning that the LIC share price is expected to be listed at the price of around ₹985 by the grey market. The expected price is 3 per cent higher as compared to the IPO price range of ₹902-₹949 per equity share.
Meanwhile, the stock market experts said that the Grey Market Premium (GMP) is just unofficial data which does not predict the exact results of LIC IPO. Instead of using GMP as an indication to predict the LIC IPO listing price, experts suggest the investors stick to the financials of the insurance company. Their advice for the bidders is to take a look at the balance sheet of the Life Insurance Corporation of India (LIC).
Experts Suggest A Buy For LIC IPO
A Senior Research Analyst at Hem Securities, Astha Jain, said, “LIC is bringing the issue at a price band of ₹902-949 per share at a p/ev multiple of 1.1x. LIC being the Fifth largest life insurer globally by GWP and the largest player in the fast-growing and underpenetrated Indian life insurance sector is a trusted brand and a customer-centric business model. has a presence across India through an omnichannel distribution network with an unparalleled agency force. The company is the largest asset manager in India with an established track record of financial performance and profitable growth looks like a decent investment avenue. Hence we recommend “Subscribe” on the issue.”
Trading Founder, Parth Niyati, said, “LIC is synonymous with insurance in India and enjoys a huge competitive advantage in terms of brand value and a huge network of agents. However, there are concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players, lower VNB margins, and short-term persistency ratios, but the valuation at Price to Embedded Value of 1.1 discounts the above concerns. Nevertheless, investors must be aware that the business of insurance is long-term in nature; therefore we recommend this issue for the long term.”
Well, the LIC IPO allotment date is May 12, 2022, and the most expected date for the LIC listing date is May 17, 2022.