The launch of the most awaited Life Insurance Corporation of India (LIC) IPO is scheduled to take place on May 4. Earlier, LIC’s gray market premium i.e. GMP is increasing.
How much is GMP: The GMP of LIC IPO improved to Rs 92 on Saturday. There has been an increase of Rs 20 from a day earlier. Under GMP, it is estimated at what price the company can be listed in the stock market.
Explain that the issue price of LIC has been fixed at Rs 902-949 per share. If the upper issue price and GMP are added, then the listing of LIC’s stock can be done at a price of Rs 1041.
What the expert has to say: Narendra Solanki, Head – Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers, has given ‘subscribe’ tag to LIC IPO. This means that experts are advising to bet on LIC’s IPO.
According to experts, the IPO looks attractive as it has around 300 million policyholders and 1.3 million agents, which constitute 55 per cent of the total agent network. It has registered premium income of over Rs 5.7 trillion in FY20.
In addition, Life Insurance Corporation of India is wholly owned and controlled by the Government of India. A healthy dividend can be expected once the company is listed.
The IPO of LIC is going to open for subscription on 4th May 2022 and will be open for bidders till 9th May 2022. Government is selling 3.5% stake of LIC. The size of this IPO is Rs 21,008.48 crore.
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It is expected that the allotment of shares will be done on 12th May 2022. At the same time, on May 17, the company will be listed in BSE and NSE. The government has given a discount of Rs 60 to policyholders and Rs 45 per share to employees.
– There will be 15 shares in one lot. Any investor can have at least one lot (15 × 949 = Rs 14235) and a maximum of 14 lots. [(949×15)×14 = 1,99,290] One can invest Rs.