Home / Markets / Ipo /  LIC IPO: What GMP (grey marker premium) signals on day 3 of bidding

Bidding for LIC IPO (Initial Public Offering) is underway and it will remain open for subscription till 9th May 2022. After two days of public issue opening, LIC IPO has been subscribed 1.03 times whereas its retail portion has been subscribed 0.93 times. As expected, LIC IPO has received strong response from policyholders and employees as its policyholder portion has been subscribed robust 3.11 times while its employees portion has been subscribed 2.22 times. It seems that grey market is closely following LIC IPO subscription status. According to market observers, LIC share price has remained steady in grey market today. They said that shares of LIC are available at a premium of 65 in grey market today.


As per the market observers, LIC IPO grey market premium (GMP) today is 65, unchanged from yesterday evening grey market premium. According to market observers, key secondary market indices closing around their Wednesday closing levels could be the possible reason for grey market premium of the insurance behemoth remaining steady. However, they said that LIC IPO GMP has come down from around 90 to 65 levels in last three days, which is mainly because of the negative secondary market sentiments. They expected some upside in grey market sentiment once there is trend reversal at Dalal Street trade pattern.

What this GMP mean

As LIC IPO GMP today is 65, it means grey market is expecting that LIC IPO listing may happen around 1014 levels, which is around 7 per cent higher from the LIC IPO price band of 902 to 949 per equity share. So, on day 3 of bidding, grey market is trying to signal that bidders may explain listing premium from the LIC IPO.

However, stock market experts advised bidders to follow the financials of LIC instead of grey market premium. They said that grey market data is unofficial and non-regulated. So, it should not be taken seriously while making any IPO investment decision. In fact, it's balance sheet of the company that gives concrete picture of its fundamentals.

LIC IPO details

LIC IPO will remain available for bidding till 9th May 2022 and tentative LIC IPO allotment date is 12th May 2022. LIC shares are proposed to list at BSE and NSE and the most likely LIC IPO listing date is 17th May 2022.

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