LIC GMP Down By 125% In Last 10 Days; Here’s What Investors Should Know

LIC IPO GMP Today: Life Insurance Corporation (LIC), which recently concluded India’s largest-ever public issue, will most likely get listed on May 17, 2022. However, signals coming in from the grey market is not much encouraging. According to market observers, LIC’s share price is quoting at a discount of Rs 25 in the grey market today. According to market observers, LIC share price is quoting at a discount of Rs 25 in grey market today. They said that LIC IPO GMP (grey market premium) has been in the negative zone for the third successive day, which can not be taken as good development ahead of share listing date.

Market observers said that LIC IPO GMP today is minus Rs 25, which means LIC IPO grey market price has remained almost steady for last 24 hours. LIC IPO GMP yesterday was minus Rs 26. Ahead of LIC IPO opening, shares of the insurer were available at a premium of Rs 92. So, in near 10 days, LIC IPO GMP has tumbled around 125 per cent. Market observers said that negative trend in the secondary markets have done major damage to the grey market sentiments in regard to LIC IPO. They said that ever since the opening of LIC IPO, the stock market mood across the world has remained bearish and this could be the major possible reason for LIC IPO GMP fall.

However, stock market experts said that grey market premium is not an ideal indicator of the success or failure of a public issue. They said that GMP is an unofficial data, which is non-regulated as well. So, one should look at the balance sheet of the company instead of grey market sentiments as the financials of the company gives a better and more concrete fundamental picture of the company.

Speaking about the LIC GMP, Abhay Doshi of Unlisted Arena, said: “The Financial behemoth got a mixed response despite attractively priced valuations on account of subdued market conditions. The current sentiments indicate at par to discount listing, however, if market sentiments stabilises or improves till listing, we may see a positive impact. Hence, one should limit their expectations as far as listing gains are concerned.”

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