LIC Shares: Here’s what the Gray Market Premium indicates before Tuesday’s listing

Shares of Bima Behemoth Life Insurance Corporation of India (LIC) could be listed on the stock exchange at a discount on Tuesday if anyone goes to the gray market premium. According to market observers, LIC’s shares are being sold at Rs 20 a liter in the unlisted market.

The government has set an issue price of Rs 949 per share, at the top end of the IPO price band, bringing in a revenue of about Rs 20,557 crore.

Abhay Doshi, Founder, Unlisted Arena, said, “Shares of LIC were trading at Rs. The financial behemoth has received a mixed response, despite attractive pricing due to the downturn in the market. ”

“The current sentiment indicates the equivalent of the discount list, however, if the market sentiment remains stable before the listing, we can see a positive effect. Therefore, their expectations of enrollment gains should be limited. ”

Earlier, on the last day of the May 9 offer, the insurer subscribed to the public offer almost 3 times, leading to strong response from policyholders, employees and retail investors. The company had set a price band of Rs 902-949 per share. However, it did offer a special discount of Rs 45 per share to LIC’s retail investors and employees. In addition, there was a discount of Rs 60 for policyholders

Doshi added Dinesh Gupta, co-founder, UnlistedZone. “LIC shares were available in the unlisted market at a discount of Rs 15-20 We can see the list on Tuesday at the same time or at a discount, ”he said, adding that the recent past has affected market sentiment by affecting gray market premiums.

Most brokerages list and issue ‘subscribe’ ratings for long term profits.

AYUSH Agrawal, Senior Analyst, Swastika Investmart, said, “We expect that tomorrow LIC may have a flat list, based on current market conditions. “Current markets are experiencing unusual volatility. This has led to sell-offs in equity markets around the world.”

“LIC in India enjoys a huge competitive advantage in terms of insurance synonyms and brand value and strong network of agents. Investors must be aware that insurance business is of long term nature. Therefore, we recommend investors to stay with the company. .

Also read: LIC shares will be listed tomorrow, what to expect here

Read more: LIC IPO: Gray market premium crashes 111% before listing next week

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