The LIC IPO GMP Grey Market Premium of the Life Insurance Corporation of India has been over a 9 percent premium over its upper price band in the grey market as the Rs 21,000-crore issue opens for subscription on May 4. The grey market premium has increased from 5 percent. The state-owned insurer LIC traded at a premium of Rs 85 per share in the grey market on Wednesday, against Rs 45 premium last Thursday.
The price band for the offer is Rs 902-949 per share. Employees and retail investors will get shares at a discount of Rs 45 a piece to the final offer price, while the discount for policyholders is Rs 60 per share to the final IPO price.
The grey market is an unofficial or unregistered platform, which generally tracks the expected listing price of the company. The trading in the grey market starts with the announcement of the price band or IPO opening date and continues till the listing of shares. LIC offered a public issue of 221.37 million equity shares on Wednesday, representing a 3.5 percent stake, which is entirely an offer for sale by the government.