There is no positive signal from gray market for LIC’s IPO

At one time the premium on LIC shares had reached Rs 95, whereas now Rs 25 is running on Disca Camel.

At present, the condition of the stock market is looking bad. Especially for Indian investors, first Paytm and now LIC IPO, which was launched with great fanfare, is only disappointing investors. LIC’s listing on May 17, amidst the continuous decline in the stock market and the huge reduction in the prices of LIC shares in the gray market, has now put a question mark on its listing gens. In such a situation, if the price of the share in the gray market is considered as an indication, then on May 17, its listing on BSE and NSE may remain weak.

According to a report by, the shares of LIC are running a discount of Rs 25 in the gray market on Thursday. Since the launch of LIC on May 4, there has been a lot of volatility in the prices of this stock in the gray market. At one point the premium on LIC shares had reached Rs 95. At the same time, market experts say that due to the ongoing slowdown in the stock market, there is a fall in the prices of LIC shares in the gray market. On Thursday also the BSE Sensex closed down 1158 points. It has come down below 53,000. This has a direct impact on the price of LIC shares in the gray market.

Let us tell you that even if LIC shares are listed at a discount of Rs 25, policyholders and retail investors will not suffer because in LIC IPO, the policyholders and retail investors will get shares at a discount. Policyholders will get the shares at a discount of Rs 60 and retail investors will get a discount of Rs 45 per share. Similarly, retail investors will suffer only if the stock is listed at a price below Rs 904.

Significantly, the quota of policyholders in LIC IPO was subscribed 6.12 times. LIC employees also bid fiercely in this IPO. This is the reason why the share reserved for employees got subscribed 4.40 times. The share of retail investors is also full 1.99 times. The non-institutional category is subscribed 2.91 times while the quota of qualified institutional buyers is 2.83 times.

(The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Investing money on behalf of to anyone That is never advised here.)

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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