As per IPOWatch that tracks IPO GMPs or grey market premiums, the grey market premium for the much awaited and the country's largest IPO has inched higher to Rs. 45 today as against Rs. 25 on April 27, signifying a healthy jump of 80% in a matter of a day.
And if experts are to be believed the premium shall further as the IPO date shall approach. The insurance behemoth shall launch its IPO on May 4 in the price band of Rs. 902-949.
So, as the grey market premium is indicative of the price at which a company may list at the current GMP, there is a fair chance that LIC IPO may offer 5% listing gains to its subscribers. The
The company's shares are slated to be listed on May 17 after the share allotment is done with on May 12.
Head of Research at Swastika Investmart Ltd assigns Subscribe rating for long term and says,"LIC is synonymous with insurance in India and enjoys a huge competitive advantage in terms of brand value. However, there are concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players. But the valuation of 1.1 times Price to Embedded Value discounts the above concerns and policy holders getting a discount of Rs. 60 makes this a bumper offer. Nevertheless, investors must be aware that the business of insurance is long term in nature; therefore we recommend this issue for long term only and policyholders must grab this opportunity because of the discount given".