Mumbai (Maharashtra) [India], May 16 (ANI): Life Insurance Corporation of India will make its stock market debut on Tuesday. Shares are likely to get listed below their issue prices, grey market data indicates.
In the grey market on Monday, LIC shares were quoted at mild discounts. In the intra-day it was also quoted for at par listing.
This means the share price of LIC is likely to be listed at the stock exchanges around the issue price of Rs 949 or below that.
In the grey market, LIC shares were quoted at a discount of Rs 15 to 20 per share. The grey market is an unofficial market. The data is used for trend prediction.
The recent volatility has led to a sharp drop in the grey market premium of LIC shares. At its peak grey market premium of LIC shares stood at Rs 95 per share. This was before the IPO opened for public subscription.
The initial public offering of LIC has been subscribed 2.95 times. The IPO opened for public subscription on May 4 and closed on May 9.
During the IPO subscription period, LIC shares enjoyed a premium in the range of Rs 8 to Rs 12 per share in the grey market.
Grey market data indicates that LIC shares would list around Rs 15 to 20 below its issue price but policyholders and employees would still make a profit if this holds as they have got discounts.
The country's largest insurer LIC has set its price band for the Initial Public Offer (IPO) at Rs 902 to Rs 949 per equity share. As the IPO is fully subscribed the issue price stands at Rs 949 per share.
Policyholders have received a discount of Rs 60 per equity share, while retail investors and employees have been offered a discount of Rs 45 on each share. (ANI)