LIC IPO Share Listing Date: LIC shares to list on stock exchanges tomorrow. Check out signals from the grey market


New Delhi: The Life Insurance Corporation (LIC) of India is all set to make its Dalal Street debut on Tuesday. LIC shares are now trading at a mild discount in the grey market, signaling negative to at par listing. Last heard, LIC shares were exchanging hands at a discount of Rs 15-20 apiece in the unofficial market over its issue price of Rs 949.

According to dealers tracking the grey market, investors should trim hopes of listing pop from the state-run insurer as sentiments are jeopardized by low subscription figures and a volatile market.

Abhay Doshi, Co-founder, UnlistedArena, said LIC is likely to be listed near the issue price and investors may not a get a decent listing pop, thanks to a sharp correction in the secondary markets lately.

“The issue is the biggest one in the India primary market and there will be ample supply in the market after the listing as retailers and HNIs might look to exit the counter. This may cap further upside,” the avid grey market tracker added.

The issue was subscribed 2.95 times, led by strong demand from employees and policyholders of the insurer. However, retailers, QIBs and HNIs investors majorly kept off the bidding process.

Sonam Srivasatava, Smallcase manager and Founder of Wright Research, said the premium for LIC in the grey market has declined sharply in the last couple of weeks due to the extremely negative sentiment in the secondary market.

“We expect the IPO to list at par or a slight premium, given that the issue was amply oversubscribed if the market stays normal,” she added. “However, if there is increased volatility, we could see the shares listing at a negative premium.”

LIC was the largest ever IPO in the domestic primary market as the government sold 22.13 crore shares or 3.5 per cent stake in the company, valuing it at Rs 6 lakh crore, about 1.12 times the embedded value of Rs 5.4 lakh crore.

Aayush Agrawal, Senior Analyst,

is also anticipating a flat listing for LIC on Tuesday. However, the stock’s modest float may limit the stock’s post-listing decline.

“Increased inflation statistics, FII outflows, currency weakness, geopolitical and rate hike-related worries, present markets are experiencing extraordinary volatility, this has caused sell-offs in equity markets all over the world,” he added.

According to the market analyst, the business of insurance is long term in nature. Agrawal is suggesting investors to stay with the company for the long term even if it lists at a discount.



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