The IPO of LIC (Initial Public Offering) was opened for subscription on May 4, 2022 and the tender for the insurance giant’s public offering will end on May 9, 2022, it is ie today. After 5 days of tender, the underwriting status of LIC IPO suggests that the public issue was subscribed 1.79 times while its retail part was subscribed 1.59 times. LIC’s IPO was 5.04 times subscribed in the insured class while its employee share was 3.79 times subscribed.
However, the weak market sentiment is continuously gaining momentum on LIC’s stock price in the gray market. According to market watchers, LIC shares are available at a premium of ₹36 on the gray market today.
LIC IPO GMP
Market watchers said that LIC IPO GMP is today ₹36, which is ₹24 less than its gray market (GMP) premium of yesterday ₹60. They said that after moving on to ₹92 levels, LIC IPO GMP continued to decline due to weak stock market sentiment. They said that the secondary market across the world is facing massive sell-offs and the Indian stock market is not spared from it. Thus, the gray market was to be affected by the sentiments of the global market.
What these GMPs mean
According to market watchers, LIC IPO GMP is today ₹36, which means the gray market is waiting for the LIC IPO around ₹985 levels ( ₹949 + ₹36), about 3% higher than LIC’s IPO price range of ₹902 to ₹949 per share.
However, stock market experts said the gray market premium is unofficial data and has nothing to do with LIC’s finances. They advised bidders to look at the balance sheet of Life Insurance Corporation (LIC) of India instead of the gray market premium.
Astha Jain, senior research analyst at Hem Securities, said in giving the ‘buy’ tag to LIC’s IPO: “LIC brings the issue to a price range of ₹902-949 per share at a p/ev multiple of 1.1x. LIC being the fifth largest life insurer in the world according to GWP and the largest player in the fast growing and underpenetrated Indian life insurance industry, it is a trusted brand and customer centric business model . is present across India through an omnichannel distribution network with unparalleled agency strength. The company being the largest asset manager in India with an established track record of financial performance and profitable growth seems like a decent investment avenue. Therefore, we recommend that you “Subscribe” to the issue.”
Giving the long-term ‘subscribe’ label, Parth Nyati, Founder of Tradingo, said, “LIC is synonymous with insurance in India and enjoys a huge competitive advantage in terms of brand equity and an extensive network of agents. business like losing market share to private players, lower profitability and revenue growth compared to private players, lower VNB margins and short-term persistence ratios, but price valuation per relative to the intrinsic value of 1.1 discounts the above concerns. aware that the insurance business is long-term in nature; so we recommend this question for the long term.”
LIC IPO Details
The tentative attribution date of the LIC IPO is May 12, 2022, while the most likely listing date of the LIC IPO is May 17, 2022.
Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.