Shares of Life Insurance Corporation (LIC) will probably be listed on the inventory exchanges on Tuesday amid worries concerning the market volatility and itemizing efficiency of the company.
Despite gloomy markets sentiments, the LIC supply received higher than anticipated subscriptions figures led by sturdy demand from retail policyholders, retail buyers and staff of the insurer. “Unofficial grey premium is trading down into the negative territory mainly on the back of depressed global markets which are in the bearish zone since Russia–Ukraine war,” stated Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.
Moreover, promoting strain continued within the home markets as FPIs have remained web sellers within the monetary 12 months up to now with outflows of round Rs 70,000 crore. “Considering all the parameters, we expect soft listing between plus or minus 5 per cent of the offer price. Moreover, LIC offer was never considered as listing gain candidate rather it should be looked at only long term,” Tapse stated.
“Everything depends on market conditions… market discount indicates that the stock may be listed at a moderate to discounted price. However, we expect a listing with a 7 per cent discount to a 3 per cent premium,” stated Ravi Singhal, Vice Chairman, GCL securities Ltd.
“Given the market sentiments still alarming and volatile following the global headlines, LIC may also trade in muted mood… hence we advise allotted investors not to panic and hold it for medium to long term. Those who are planning to buy on a listing day should accumulate by taking volatility as opportunity,” stated an analyst.
The authorities has mounted the problem worth of LIC shares at Rs 949 per share, the higher finish of the IPO worth band.
LIC policyholders and retail buyers have gotten the shares at a worth of Rs 889 and Rs 904 per shares respectively. The IPO closed on May 9 and shares had been allotted to bidders on May 12. The authorities bought over 22.13 crore shares or 3.5 per cent stake in LIC by the IPO at a worth band of Rs 902-949 a share.
The retail buyers and eligible staff of LIC had been supplied a reduction of Rs 45 per fairness share over the problem worth, whereas policyholders received a reduction of Rs 60 per share.
The share sale fetched the federal government round Rs 20,557 crore. The supply which closed with almost 3 occasions subscription, was predominately lapped up by retail and institutional consumers, however international investor participation remained muted.
LIC had final month diminished its IPO measurement to three.5 per cent from 5 per cent determined earlier as a result of prevailing uneven market circumstances. Even after the diminished measurement of over Rs 20,557 crore, LIC IPO is the largest IPO ever within the nation.
