New Delhi: The initial public offering of the Life Insurance Corporation of India has commanded a 9 percent premium over its upper price band in the grey market as the Rs 21,000-crore issue opens for subscription on May 4.
In fact, the traded grey market premium has increased from 5 percent, quoted last week.
While investors are busy scanning financials of LIC, grey market is also giving positive signals in regard to the public issue. According to market observers, LIC IPO GMP (grey market premium) today is 85, which is around 8 per cent higher from the LIC IPO price band of ₹902 to ₹949 per equity share.
Here are things to note before the IPO opens:
IPO date: The LIC IPO will be open for bidding to the general public from May 4 to May 9. (Click here to know how to apply)
Price band: The LIC IPO price band has been fixed at ₹902 to ₹949 per equity share. However, policyholders and LIC employees applying for the public issue will get a ₹60 and ₹45 discount, respectively.
LIC IPO GMP: Market observers told LiveMint that the LIC IPO grey market premium (GMP) is currently at ₹85, ₹16 higher from the previous day.
IPO size: The Government of India has planned to raise ₹21,008.48 crore from the public issue, making it the country’s biggest IPO so far.
IPO lot size and limit: Applicants will be able to apply in lots, where one IPO lot comprises 15 LIC shares. An applicant can apply for a minimum of one and a maximum of 14 lots or 210 shares. The minimum amount required to apply for the IPO, therefore, is ₹14,235 ( i.e. ₹949 x 15). The maximum bid amount for retail investors, policyholders and LIC employees has been capped at ₹2 lakh.
IPO allotment date: The share allotment is likely to be announced on May 12.
LIC IPO listing: The LIC shares are likely to be listed on BSE and NSE on May 17.
