LIC IPO: The initial public offering (IPO) of the Life Insurance Corporation of India (LIC) insurer is going to hit the Indian primary markets next month. As per the information available on the official BSE website, the LIC IPO subscription date has been fixed from May 4 to May 9, 2022. The Government of India (GoI) has fixed the LIC IPO price band from 902 949 per equity share. Meanwhile, LIC shares have become available in the gray market. According to market experts, LIC shares are trading at a premium. Today 20 in the gray market.
LIC IPO GMP
Market observers said LIC IPO GMP (grey market premium) today is 20, which is 28 down from its gray market premium on Wednesday. The likely reason for this fall in LIC’s IPO GMP today could be negative market sentiment, he added. He also said that LIC’s IPO is about to open after a week, i.e. despite the weakness in the secondary market, the prediction of premium by the gray market should be taken as a good sign. LIC shares opened with a premium of Rs in the gray market on Monday 25.
what does this gmp mean
LIC IPO is today as GMP 20, it means gray market is expecting LIC IPO listing 969, almost 2 percent higher than LIC’s IPO price band from 902 949 per equity share.
However, stock market experts said GMP is not the right criterion to ascertain whether an IPO will outperform or not. He said that teh company’s own financial position which gives solid i9 information about the fundamentals of the company. He advised investors to go through the balance sheet of LIC instead of just following GMP.
On whether to apply for LIC IPO or not, Santosh Meena, Head of Research, Swastika Investmart Ltd said, “LIC is synonymous with insurance in India and enjoys a huge competitive advantage in terms of brand value. However, there are concerns. Losing market share for private players like the company, lower profitability and revenue growth as compared to private players. But valuation of Embedded Value at 1.1 times Value waives the above concerns and offers a bumper offer to policy holders with Rs.60 discount Still, investors should be aware that the business of insurance is long term in nature, so we recommend this issue only for long term and policyholders should take advantage of this opportunity because of the discounts offered to them “
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.