Shares of Life Insurance Corporation (LIC) have slipped below their issue price in the unofficial gray market, said people in the know. Sources said shares of the insurance giant are changing hands between Rs 940 and Rs 945 in the gray market. LIC’s IPO price is expected to be Rs 949. Shares of LIC are expected to make their stock market debut on Tuesday. If gray market activity is to go by, the stock could list at a discount.
However, individual investors would still end up making some gains. The break-even point for retail and policyholders, who have applied in the IPO, is Rs 905 and Rs 889, respectively. The Center has offered a discount of Rs 45 to retail investors and employees of LIC, while policyholders are offered a discount of Rs 60 per share.
LIC’s IPO, which closed on Monday, has received bids of nearly Rs 44,000 crore and over 7 million applications, highest for any IPO in the domestic market.
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