LIC IPO Listing: Shares of Life Insurance Corporation of India (LIC) are going to debut on Dalal Street today. As per the information available on BSE website, the date of LIC IPO listing is 17th May 2022. The BSE notice stated that ‘equity shares of Life Insurance Corporation of India will be listed and admitted for transactions in the ‘A’ list on the exchange. A ‘Group of Securities’ in a Special Pre-Open Session (SPOS).
While the bidders and the market supervisor are busy getting information regarding lic ipo listing priceThe gray market remains bearish on LIC’s IPO. As per market observers LIC IPO GMP (Grey Market Premium) is still negative today as LIC is citing discount of share price 28 in the gray market today.
LIC IPO Listing Price: What Experts Say
According to stock market experts, there may not be a four-digit listing in LIC’s IPO as it is expected to list around from 910 920 in case of bears whereas in case of bulls it may be listed at approx. from 970 980. Hence, soft opening is expected in LIC’s stock today.
Speaking on LIC IPO share price opening, Ravi Singhal, Vice Chairman, GCL Securities said, “LIC IPO may have a soft opening today and may not open in four digits. In case of bulls it will open at around 3-4%. cent premium whereas in case of bears, the public offering may open at around 5 per cent discount. Hence, LIC IPO opening price is expected to be in the range from 910 980. In case of negative secondary markets, I expect LIC IPO to open around from 910 920 Whereas in the event of a positive opening of the stock market today, LIC’s stock can open from 970 980 range.”
Anticipating a flat listing of LIC shares, Ayush Agarwal, Senior Analyst, Swastika Investmart Ltd, said, “We anticipate that LIC may have a flat listing tomorrow depending on the current market condition. In view of the rise in inflation figures Due to, FII outflows, currency weakness, geopolitical and rate hike concerns, the current markets are experiencing extraordinary volatility, leading to a sell-off in equity markets across the world.”
Swastik Investmart expert further added that LIC is synonymous with insurance in India and enjoys a huge competitive advantage in terms of brand value and vast network of agents. However, there are concerns with the company such as losing market share to private players, lower profitability and revenue growth than private players, low VNB margins and short-term persistence ratio, but valuations at embedded value from a value of 1.1 had discounted the above. concerns. Nevertheless, investors should be aware that the business of insurance is long-term in nature; Hence we recommend investors to stay with the company for a long time even if the company is listed at a discount.
“Even if the shares turn flat on Tuesday, retail investors will still be able to make gains because of the discount offer, so I don’t see it as a bad bet as the valuations are also attractive,” said Narendra Solanki, Head of Fundamental Research. Domestic Brokerage in Anand Rathi.
Why LIC IPO is GMP Negative
Highlighting the reason for negative gray market sentiment with respect to LIC IPO, Prashant Taapsee, Research Analyst, Mehta Equities, said, “Unofficial gray premium is trading in negative territory mainly on the back of bearish global markets which are facing bearish trend. are in the region.. We expect soft listing at +/- 5% of the offer price.”
slowdown in ipo market
The Indian IPO market, which saw huge growth in 2021, has experienced a significant slowdown this year. EY said in a report on Monday that it was concerned about geopolitical tensions, stock market volatility, price corrections in overvalued stocks from recent IPOs, as well as concerns about rising commodity and energy prices and slowing economic growth. shows the effect of.
EY said that in the first quarter of 2022, the proceeds raised through India’s primary markets stood at $995 million through the three largest IPOs, compared to $2.57 billion in the same period last year.
Sandeep Khaitan, partner and financial accounting advisory services leader, EY India, said if market conditions improve, there could be a strong pipeline of IPOs this year as over 20 companies filed draft prospectus in the first quarter of this year. has done.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.