LIC IPO GMP Turns Negative; Know What It Means For Investors?


LIC IPO subscriptions closed on May 9. Investors who had bid for IPO shares should now be eagerly ready for the allotment of IPO shares of the nation’s largest insurance coverage firm. However, forward of LIC IPO allotment, grey market sentiment in regard to the Initial Public Offering (IPO) of the insurance coverage behemoth has additional gone southward. After nosediving within the unfavorable zone on Wednesday, LIC IPO GMP (gray market premium) has additional gone down as we speak.

What is The Current GMP of LIC IPO?

According to market observers, LIC shares can be found at a reduced value of Rs 26 within the grey market as we speak. Market observers stated that LIC IPO GMP as we speak is minus Rs 26, which is Rs 18 decrease from its yesterday’s grey market premium of minus Rs 8. Market observers maintained that LIC IPO GMP has remained within the unfavorable zone for the second successive day, which isn’t an excellent signal for the most important Indian public challenge as it’s just some days away from itemizing. They stated that unfavorable secondary market sentiments have completed the harm to grey market sentiments in regard to LIC IPO.

What Does GMP Mean?

Gray market premium or GMP is a premium quantity paid at which preliminary public providing (IPO) shares are traded earlier than it’s listed on the inventory exchanges. Market observers stated that LIC IPO GMP as we speak is minus Rs 26, which implies the grey market is anticipating that LIC IPO itemizing might occur round Rs 923 ( Rs 949 – Rs 26), which is round 3 per cent decrease from its value band of Rs 902 to Rs 949 per fairness share.

However, inventory market specialists prompt to traders that GMP is an unofficial information, which is non-regulated. So, those that observe GMP are suggested to undergo the financials of the corporate as properly as a result of the stability sheet of the corporate will give a greater image in regards to the firm’s fundamentals.

Speaking in regards to the LIC GMP, Abhay Doshi of Unlisted Arena, stated: “The monetary behemoth received a combined response regardless of attractively priced valuations on account of subdued market circumstances. The present sentiments point out at par to low cost itemizing, nonetheless, if market sentiments stabilizes or improves until itemizing, we may even see a constructive affect. Hence, one ought to restrict their expectations so far as itemizing good points are involved.”

LIC IPO Details

LIC IPO shares are expected to list on May 17, 2022, on public exchanges. LIC IPO has been subscribed 2.95 times on the final day in what could be seen as a healthy response from the investors even though participation from the FIIs remained subdued. The IPO received bids for 47.83 crore equity shares against 16.2 crore equity shares on offer. The policyholder bucket has been subscribed 6.11 times while the employees’ portion saw bidding of 4.39 times. The retail investors’ bid was subscribed 1.99 times and the non-institutional investors’ portion was subscribed 2.91 times.

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