LIC IPO: Craze growing slowly? GMP increased 5 times in 4 days, know how much you can earn

The Central Government had submitted the revised draft of LIC IPO (LIC IPO DRHP) with market regulator SEBI on Monday last week. Earlier the government was going to sell its 5 percent stake in LIC through this IPO. However, now its size has been reduced.

@Moneycontrol

This week the much-awaited IPO of the government insurance company LIC is going to come in the open market. From today i.e. Monday, this IPO has been opened for anchor investors. This IPO will open for retail investors on May 4 and bidding can be done till May 9. Meanwhile, there has been an improvement in LIC IPO premium (LIC IPO GMP) in the gray market. Today its premium has increased to Rs 85 in the gray market.

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GMP climbed more than five times

According to IPO Watch, LIC's IPO is currently trading in the gray market at a premium of Rs 85, or about 10 percent. At the same time, according to the top share brokers also, the GMP of LIC IPO is currently trading at a premium of about 10 percent.

The GMP of LIC IPO on 23 April was just Rs 15. The way the premium of LIC IPO has gone up in the gray market, if it is reflected in the open market also, then the investors of the IPO can earn a decent amount.

Government selling such stake

The Central Government had submitted the revised draft of LIC IPO (LIC IPO DRHP) with market regulator SEBI on Monday last week. Earlier the government was going to sell its 5 percent stake in LIC through this IPO. However, now its size has been reduced. According to the revised draft, now the government is going to sell only 3.5 percent stake in LIC. In this way, the IPO of LIC is now going to be worth Rs 21 thousand crores. However, even after this, it will become the biggest IPO of the country so far. Till now this record was in the name of Paytm, which had introduced an IPO of Rs 18,300 crore last year.

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FPO will not come for one year

The price band of this mega IPO of the government insurance company has been fixed from Rs 902 to Rs 949. 15 shares are placed in one lot of this IPO. The board has fixed a discount of Rs 45 for employees in LIC IPO and Rs 60 for policyholders of LIC. The listing of LIC IPO in the stock market is going to happen on May 17. The government has also made it clear that there is no plan to bring any follow-on issue (FPO) of the IPO for the next one year. Read More
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