Home / Markets / Ipo /  LIC IPO: What GMP (grey market premium) signals on day 2 of bidding

LIC IPO: Bidding for Life Insurance Corporation (LIC) IPO (Initial Public Offering) is underway as subscription for public issue worth 21,000 crore will remain open till 9th May 2022. As expected LIC IPO has received strong response from policyholders and employees as both portions have been subscribed more than 100 per cent by 11:00 AM on day 2 of bidding. the public offer has been subscribed 0.75 times whereas its retail portion has been subscribed 0.69 times. However, due to weak secondary market sentiments, grey market sentiment has gone slightly down from the issue opening date. According to market observers, LIC share price is quoting at a premium of 60 in grey market today.


Market observers said that LIC IPO grey market premium (GMP) today is 60, which is 5 lower from its yesterday evening GMP of 65. They said that such dip in LIC IPO GMP can be attributed to negative secondary market sentiments after surprise RBI's repo rate and CRR hike. However, they said that policyholders and employees have responded strongly to the initial offer of insurance behemoth and expected strong response from investors in upcoming days. They said that LIC IPO GMP has come down from near 90 to 60 in last three days, which is obvious as stock market has been nosedived on successive sessions this week.

What this GMP mean?

As per the market observers, LIC IPO GMP today is 60, which means grey market is expecting that LIC IPO listing would be around 1009, which is around 6.50 per cent higher LIC IPO price band of 902 to 949 per equity share.

However, stock market experts said that GMP should not be the criteria for deciding success or failure of a public issue. They said that GMP is an unofficial data that has nothing to do with the financials of the company. They advised investors to look at the financials of the company as they give concrete idea about the fundamentals of a company.

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