LIC IPO GMP: After the announcement of share allotment, the focus is now on the share listing date of Life Insurance Corporation of India (LIC), which is most likely on 17th May 2022. However, the signals coming from the gray market are not very encouraging. According to market observers, LIC’s share price is being quoted at a discount of Today in Gray Market 25. He said that LIC IPO GMP (Grey Market Premium) has been in negative territory for the third consecutive day, which cannot be taken as a good development before the date of share listing.
lic ipo gmp today
Market experts say LIC’s IPO GMP today is minus 25, which means lic ipo gray market price It has remained almost constant for the last 24 hours. LIC’s IPO GMP yesterday was minus 26. Before the opening of LIC IPO, the shares of the insurer were available at a premium of 92. So, in about 10 days, LIC IPO GMP has fallen by around 125 percent. Market observers said the negative trend in the secondary markets has caused major damage to the gray market sentiments regarding LIC IPO. He said that after the opening of LIC IPO, the global stock market has remained bearish and this could be a major possible reason for the fall in LIC IPO GMP.
what does this gmp mean
As LIC’s IPO GMP today is minus 25, it means gray market is expecting LIC IPO listing 925 ( 949 – 25), which is about 3 per cent lower than LIC’s IPO price band from 902 949 per equity share.
Hence, the gray market is indicating that LIC shares may have a discounted debut if there is no trend reversal in the secondary market sentiment.
However, stock market experts say that the gray market premium is not an ideal indicator of the failure success of a public issue. He said that GMP is an unofficial data, which is also non-regulated. Therefore, one should look at the balance sheet of the company rather than the gray market sentiments as the company’s financials give a better and solid fundamental picture of the company.