LIC IPO: Latest GMP- What It Suggests On Listing Gains?

All eyes are set on the launch of the much awaited Life Insurance Corporation of India IPO that is set to open for public subscription between May 4-May 9. Besides the primary market, there is also a grey market or the market of unlisted shares and the premium a particular IPO share commands there before its debut on the bourses is highly representative of its likely listing gains or stock exchange debut scenario.

Likewise, LIC IPO shares as per the portal tracking the grey market ipowatch.in is commanding the latest premium of Rs. 85 as of May 2, 2022 at around 11:14 am. So, consider the LIC IPO upper price band (Rs. 902-949), the stock may list at 1034, implying gains to the tune of almost 9%.

In the behemoth life insurance and general insurance provider, the government shall offload 3.5% stake as against the previously sought 5% stake owing to the market conditions. In the country's largest ever IPO which is a complete OFS - the centre plans to raise Rs. 20,557.23 crore much lower than the earlier estimated of about Rs. 60,000 crore.

The company's IPO has also garnered bids from big investors for two times the size of the anchor book, sources told Reuters.

Note the allotment of LIC IPO shares will be done by May 16 and its listing will happen on May 17, 2022.