LIC IPO: Monday was the last day of the IPO of LIC, a government company in the life insurance sector. This mega issue has been subscribed almost 3 times. The highest number of subscriptions have been received in the reserved quota for policyholders. At the same time, the quota of employees has also got better response. However, its gray market premium (GMP) has now registered a decline.
Through this IPO, the government is raising Rs 21,000 crore by selling its 3.5 percent stake. The company had fixed the price band for this at Rs 902-949 per share. The issue was opened for general investors on May 4 and for anchor investors on May 2. LIC has raised about Rs 5,627 crore from anchor investors.
This quota is full
LIC’s issue filled 2.94 times till the last. It can be considered good in terms of its large size. The quota of policyholders and employees got better response. About 6 times subscription has been received in the quota of policyholders. At the same time, the quota of employees is about 4.32 times filled. Also, the share of Qualified Institutional Buyers (QIBs) is 2.83 times, apart from this, the share of non-institutional investors is 2.88 times and the quota of retail investors is 1.95 times. The final subscription figure is likely to change.
Continually falling in GMP
If we look at the gray market premium, then there are weak signals regarding its listing. According to experts, its premium has come down to Rs 40 in the gray market. It has come down to 60 per cent overall since the first day of the IPO. Its GMP had reached close to Rs 105 on the first day of the issue.
At the same time, before the issue opened, the GMP of LIC had come down to Rs 85. On the basis of Monday’s GMP, LIC’s share can be listed near the upper level of the price band by Rs 949 to Rs 40 i.e. Rs 989. This is only 4 per cent more than the issue price.
Listing will happen on this day
According to the information received so far, LIC’s shares will be listed on BSE and NSE on May 17. The allotment of its shares will take place on May 12. If the volatility in the market continues even further, then it may have an impact on its listing. This will definitely disappoint those investors who have bid in this issue for listing gains.
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