LIC IPO: Grey market premium falls 90% ahead of lisiting
LIC shares were selling at a premium of just ₹10 in the unregulated grey market amid weakness in the equity market, in line with global peers.
LIC shares were selling at a premium of just ₹10 in the unregulated grey market amid weakness in the equity market, in line with global peers.
The ambiguity caused by the special treatment to LIC will make it easier for others to seek exemptions as there are no rules that define the basis on which exemptions may be granted or denied
RBI has requested all bank branches designated to process ASBA applications be kept open to the public to facilitate bidding for LIC IPO.
On the reduced size of the offer, DIPAM Secy Tuhin Kanta Pandey says it's the right size considering the current market. With even this size, the LIC IPO is the biggest in India so far, he adds.
For policyholders to bid for the LIC IPO, they must have a demat account, which has been linked to their permanent account number (PAN) present in LIC records.
LIC IPO issue opens for subscription on May 4, 2022, and the price band has been fixed at ₹902-949 apiece.
The reduced valuation of the IPO along with the current despondency of the market raise questions over the prudence and the necessity of launching an IPO of a crown jewel like LIC.
Even with a reduced issue size, LIC will be the largest IPO in the country, outdoing Coal India’s ₹15,500 crore IPO in 2010 and Reliance Power’s ₹11,700 crore IPO in 2008.
LIC has time till May 12 to float the LIC IPO, following which SEBI's approval to issue a public offer will cease.
Shortly after SEBI's approval of its DRHP, LIC had released the financial results for the December quarter, requiring changes in the draft document for the IPO.