LIC IPO News: Those investing in LIC IPO may get a shock on the day of listing on the stock exchange on 17 May 2022. The gray market premium of LIC IPO has gone down to negative. The gray market premium of LIC IPO is trading below Rs 15 from the upper band of its issue price.
Cold response of investors to IPO!
The reason for the reduction in the gray market premium rate is that the response to LIC’s IPO did not get the response expected from domestic investors as well as foreign investors. IPO subscribed less than 3 times. In the quota reserved for institutional investors, applications were received from foreign investors for only a small number of shares. The main reason for which is the rising inflation with the continuing decline in the stock market, the war between Russia and Ukraine has not stopped and the selling of foreign investors in the Indian markets. Whereas before the opening of LIC’s IPO, the gray market premium (GMP) went up to the level of Rs 95.
IPO closed on 9th May
LIC’s IPO was open for subscription to retail investors from May 4 to 9. The price band of LIC IPO was fixed at Rs 902 to Rs 949 and Rs 20,557 crore has been raised through IPO.
Discount on IPO Price
LIC has also given discounts to policyholders investing in its IPO. Policyholders were given a discount of Rs 60 per share, while retail investors and employees of the company were given a discount of Rs 40 per share.
Listing on stock exchange on 17th May
Shares will be allotted to the investors on 12th May and by 16th May the shares will be credited in the demat account of the investors. LIC’s IPO will be listed on the stock exchange on May 17.
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