The government is planning to dilute its stake in LIC through the Initial Public Offering (IPO). (AFP)

Lic Ipo: Gmp still negative. Experts see list of ‘moderate to reduced’ actions

IPO of LIC: After the finalization of the allocation of shares for the initial public offering (IPO) of Life Insurance Corporation (LIC) of India, bidders and market watchers are eagerly awaiting the IPO date of the shares of LIC, which is most likely May 17, 2022, i.e. Tuesday. Meanwhile, LIC IPO GMP (grey market premium) is still in negative territory. According to market watchers, LIC IPO GMP today is less 20, which is 5 more than its gray market premium yesterday less 25. Means LIC IPO stock price quoted 929 ( 949 – 20), on the gray market today.

According to stock market experts, a lot will depend on the sentiments of the secondary market. If market sentiment continues to remain negative, then LIC shares may debut at a reduced price, while in the event of a trend reversal on Dalal Street, LIC shares may trade at a moderate premium .

Speaking at LIC’s IPO, Abhay Doshi, Founder of UnlisteArena.com, said: “The financial giant has received a mixed response despite valuations at attractive prices due to lackluster market conditions. Current sentiment indicates at par with the discounted quote, however, if market sentiment stabilizes or improves to the quote, we can see a positive impact, therefore, one should limit their expectations regarding relates to trading gains.

Expecting a weak listing for LIC shares, Manoj Dalmia, Founder and Director of Proficient Equities Private Limited, said: “LIC is the largest insurance company in India and would be listed on May 17. The IPO in The exchange was only oversubscribed 2.95 times in total.We expect that LIC stock could trade at a reduced price if the secondary market continues to face selling pressure that we have been witnessing for over one week.”

Stock market experts have advised beneficiaries of LIC’s IPO to limit their expectations of the public offering as it will not be able to yield a double-digit listing premium even in the event of a trend reversal on the secondary market.

Ravi Singhal, Vice President, GCL Securities, said, “As we can see, the market scenario is very negative after the opening of LIC’s IPO. So I think it can be listed at a value close to face value with a premium of 5%, depending on the market scenario in the coming weakness.

Expecting a subdued quote even if the stock market recovers next week, Ravi Singh, Vice President and Head of Research at Share India, said: “The current market scenario is seeing selling pressure, which would not be favorable for LIC stock listing.However, Nifty is expected to show some recovery next week.Therefore, LIC IPO could be listed at a premium of around 5 to 8%.

Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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