LIC IPO Live: LIC IPO got a bumper opening on its first day on Wednesday. The country’s biggest IPO ever opened for subscription at 10 am and so far it has been subscribed 64%. The portion reserved for policyholders (10% of the total shares) became oversubscribed. This means that 1.9 times bids have already been made under this quota.
16 crore 20 lakh 78 thousand 67 shares have been put up for sale. So far, bids have been received for more than 10 crore shares. The reserve share for employees has also been fully subscribed. While 57% share of retail investors has been subscribed. Investors will get a chance to invest till May 9.
LIC IPO Open From Today
The company’s shares will be listed on the stock exchanges on May 17, a week after the close of the IPO. The central government is expected to get Rs 21,000 crore from LIC’s IPO. Under the IPO, the government is selling its 22.13 crore shares in the company. The price range for this has been fixed at Rs 902 to Rs 949 per share.
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To invest in IPO, it is Necessary to Have a Demat Account
As per SEBI rules, equity shares of any company are issued only in demat form. Hence anyone, be it policy holders or retail investors, needs to have a demat account.
Should I Invest in LIC’s IPO or Not?
Most of the market analysts are advising to invest in this. Money can be made in IPO both in short term and long term. However, analysts are advising to stay in it for long term. This is because the business model of insurance companies is long term. If you apply under the policy holder quota, you will already get a discount of Rs 60 and even if the share is listed at Rs 949, you will still get a benefit of Rs 60 per share. LIC IPO Live.
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LIC IPO: Decrease in Gray Market
After the opening of the issue, the share price of LIC has decreased in the gray market. It has come down to Rs 65 today as compared to Rs 85 on May 3. Whereas last week its price had reached 90 rupees in the gray market. At present, it has come down to Rs 65 on the day of issue opening. In this sense, the listing of the share can be done at a premium of less than 1014 rupees (949 + 65 = 1014) i.e. less than 10 percent.
Government will Sell 3.5 Percent Stake
The Government of India will sell its 3.5 percent stake in this IPO of LIC. Earlier the government was planning to sell 5 per cent stake, but now it has been decided that only 3.5 per cent stake of LIC will be sold. The government has revised the valuation of LIC and the stake to be sold because there has been a lot of volatility in the market in the past. The stake to be sold has been reduced due to apprehension of less demand from investors.