LIC IPO: The Initial Public Offering (IPO) of Life Insurance Corporation (LIC) of India is likely to file a preliminary IPO prospectus on Tuesday but LIC share price has already made its debut in grey market. According to market observers, LIC shares are available at a premium of ₹48 in grey market today. This means LIC IPO GMP (grey market premium) today is ₹48.
What this LIC IPO GMP means
Though, speculations are high on expected LIC IPO price band and its subscription opening date, grey market has started to signal that LIC IPO subscribers can expect return on their investment as grey market premium is an unofficial signal about the expected return that an IPO bidder can expect from the public issue.
LIC IPO subscription is expected to open between 4th to 9th May 2022. The Government of India (GoI) is looking to sell a 3.5 per cent stake in the state-owned insurance behemoth. As per the media reports, LIC IPO price band may be announced on Wednesday. Reservations for policyholders and employees, and discounts, issue dates and issue price will be known by Wednesday, reports PTI.
LIC management and the investment bankers will embark on road shows in six cities across India - including Mumbai, New Delhi, Bengaluru, Ahmedabad, Rajkot, Kolkata - where they will be meeting potential investors and analysts starting on Wednesday, reported Reuters quoting an anonymous source. The road shows are likely to be concluded by the end of this week. In the last two years with the COVID-19 pandemic, physical road shows had come to a grinding halt but now with infections down the management has decided to re-start the process.
The GoI had initially wanted to list LIC IPO in FY22 but had to delay the stake sale plan after the Russia-Ukraine war triggered a market rout.
(With inputs from agencies)
