LIC’s IPO trading at a premium of 5 to 7 percent in gray market, know details

LIC IPOThe dates for the opening of the IPO of LIC, the largest public sector insurance company, have been announced. The price band has also been announced. Along with this, LIC IPO is also trading at a premium in the gray market.

LIC shares trading at premium in gray market
Even before the IPO opens, LIC’s stock is trading at a premium of Rs 45 to 55, which is 5 to 7 per cent higher than the issue price. Let us tell you that the price band of LIC has been fixed at Rs 902 to 949 per share.

Know the size and details of the IPO
LIC’s IPO will be open for investors’ investment from May 4 to May 9. Anchor investors can invest in pre-IPO placement on May 2. There is a plan to raise Rs 20,557 crore through IPO. However, earlier the government had set a target of raising Rs 60,000 crore through IPO. But the size of the IPO has been reduced. The price band of IPO has been fixed from Rs 902 to 949. DIPAM Secretary Tuhin Kant Pandey said that even after the size of LIC IPO was reduced, this is the biggest IPO.

Discount on IPO Price
LIC is giving discount to policyholders investing in its IPO. Policyholders will be given a discount of Rs 60 per share, then retail investors and employees of the company will get a discount of Rs 40 per share.

Will be beneficial in the long term
DIPAM Secretary Tuhin Kant Pandey said that LIC’s IPO will prove to be a better investment for investors in the long run. LIC Chairman MR Kumar said that the valuation of LIC IPO has been kept keeping in mind the current situation and listing requirements. Discussions are yet to be held on selling more stake. However, in the near future its chances are very less.

Listing on stock exchange on 17th May
The target is to raise Rs 5630 crore through pre-IPO placement at the upper price band. 221.37 million shares will be sold in the IPO, of which 59.29 million shares have been kept in reserve for anchor investors. 1.58 million shares have been reserved for employees, 22.14 million for policyholders and 98.83 million for institutional investors. The shares will be allotted on 12th May and the shares will be credited to the demat account of the investors by 16th May. LIC’s IPO will be listed on the stock exchange on May 17.


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