The LIC grey market premium has faded, and the stock now trades at a discount on the unlisted market.
Despite an enormous response from investors in the primary stock market, the insurer Life Insurance Corporation of India (LIC) fell on Wednesday. The insurance behemoth’s stock is expected to go public on May 17.
The insurer’s initial public offering (IPO) was approximately three times subscribed on the final day of the offering, May 9, thanks to a strong response from policyholders, employees, and retail investors. The firm set a price range of Rs 902-949 per share. However, retail investors and LIC workers received a special discount of Rs 45 per share. In addition, policyholders received a Rs 60 discount.
According to a market observer who deals in unlisted shares, LIC is trading in the unlisted market at a discount of Rs 20. Previously, on April 30, the insurance behemoth’s GMP was hovering around Rs 90. The premium at which grey market IPO shares are traded before they are listed on the stock exchange is known as the grey market premium.
According to Abhay Doshi, proprietor of UnlistedArena.com, LIC IPO shares are available on the unlisted market at a discount of Rs 20. “The initial public offering (IPO) pricing was kept at acceptable levels. The risky market conditions, on the other hand, worried investors. The primary market has been affected by a large IPO, broader market volatility, and interest rate hikes. We would have seen a decent response to the IPO of banking behemoth if market circumstances had stayed stable,” Doshi remarked.
The issue received a ‘Subscribe’ grade from most brokerages for both listings and long-term gains.
“LIC to focus on its strong growth momentum by increasing market share and focusing more on underwriting quality and the high margin product mix,” according to KR Choksey Shares and Securities. The company’s valuation will be comparable to its private counterparts, given the development potential for the pension and annuity segment and the company’s position as the market leader in the insurance sector. Investors can subscribe to the initial public offering for both listing and long-term benefits.”
“At the upper price levels, LIC’s embedded value with a market cap of Rs 6,00,200 crore is quite lower when compared to the three listed peers like HDFC Life Insurance, SBI Life Insurance, and ICICI Prudential Life Insurance, where the average embedded value stood at Rs 3,10,500 crore and the average market capitalisation-to-embedded value ratio arrived at 3.4 times,” according to Anand Rathi Share and Stock Brokers. As a result, the issue appears to be highly appealing to investors.”
Nifty falls below 16000, may fall to 15500, while the Sensex drops 800 points.
On Wednesday morning, domestic markets opened higher but quickly fell into negative territory. The S&P BSE Sensex tumbled about 500 points, or 0.89 per cent, to around 53,900, while the NSE Nifty 50 fell below 16,100. The Bank Nifty briefly reached 34,700 before falling to 34,450, while the India VIX spiked to 23. Bharti Airtel, Kotak Mahindra Bank, Axis Bank, and ICICI Bank were the biggest gainers on the Sensex. The leading laggard on the Sensex was ITC, down 2.3 per cent. Larsen & Toubro, Hindustan Unilever, and Infosys were the other laggards.
Wipro, Zomato, and Paytm are among 213 equities on the BSE that have hit 52-week lows amid the sell-off, with 46 scripts reaching new highs.
On Wednesday, Indian equities markets fell as selling pressure increased in I.T. and FMCG stocks. The leading indices were turbulent in trade, mirroring global markets ahead of critical macroeconomic data. While the S&P BSE Sensex dropped over 800 points, the NSE Nifty 50 plummeted below the 16,000 support zone, hitting a low of 15,992.
On Wednesday, Indian equities markets fell as selling pressure increased in I.T. and FMCG stocks. The leading indices were turbulent in trade, mirroring global markets ahead of critical macroeconomic data.
While the S&P BSE Sensex dropped almost 800 points, the NSE Nifty 50 plummeted below the 16,000 support zone to a low of 15,992. The sectoral indices were in the red, with real estate, power, capital goods, FMCG, car, I.T., and metal down 1-2 per cent. The BSE Midcap and BSE Smallcap indices lost 1.54 per cent and 3.12 per cent in broader markets. Two hundred thirteen equities hit 52-week lows on the BSE intraday, while 46 scrips achieved new highs.
BSE stocks that achieved 52-week highs and lows
On the BSE, stocks such as Avro India, CWD, Galactico Corporate Services, Mehta Housing Finance, Mid India Industries, Panth Infinity, Sadhna Broadcast, SEL Manufacturing Company, Shankar Lal Rampal Dye-Chem, Universal Star-Chem Allied, and Virat Industries achieved 52-week highs. In the meantime, Anant Raj, AstraZeneca Pharma, Bajaj Electricals, Mrs Bectors Food Specialties, Bosch, Campus Activewear, Can Fin Homes, Dabur India, Dixon Technologies, Glenmark Pharma, HDFC AMC, IDFC First Bank, IndiGo Paints, JK Lakshmi Cement, C.E. Infosystems (MapMyIndia), MCX, Medplus, One 97 Communications (Paytm), Info Edge (Naukri),
NSE stocks that achieved 52-week highs and lows
On Wednesday, the National Stock Exchange (NSE) saw 17 securities reach 52-week highs, while 259 shares reached new lows. Global Education, Kohinoor Foods, Kritika Wires, Madhya Bharat Agro Products, Sonam Clock, and Vaxtex Confab are stocks that hit new highs. On the other hand, stores such as Aurobindo Pharma, Bajaj Consumer Care, Bank of India, Birla Corporation, CSB Bank, Eldeco Housing And Industries, Finolex Cables, Granules India, Gulf Oil Lubricants, Hindustan Zinc, Indiabulls Housing Finance, ICICI Securities, Jubilant Foodworks, Kansai Nerolac Paints, Medplus Health Services, Natco Pharma, Orient Cement, PNB Housing Finance, Steel
On the NSE, stocks have hit a 52-week high and low.
On Wednesday, the National Stock Exchange (NSE) saw 17 securities reach 52-week highs, while 259 saw new lows. Kohinoor Foods, Kritika Wires, Madhya Bharat Agro Products, Sonam Clock, and Vaxtex Cotfab were stocks that hit new highs. On the other hand, stocks like Aurobindo Pharma, Bajaj Consumer Care, Bank of India, Birla Corporation, CSB Bank, Eldeco Housing And Industries, Finolex Cables, Granules India, Gulf Oil Lubricants, Hindustan Zinc, Indiabulls Housing Finance, ICICI Securities, Jubilant Foodworks, Kansai Nerolac Paints, Medplus Health Services, Natco Pharma, Orient Cement, PNB Housing Finance, Steel Authority.
edited and profread by nikita sharma
