LIC's IPO closed on 9 May, its shares were allotted to the bidders on 12 May.
The country's largest insurance company LIC will list its shares in the stock market on Tuesday.
The government had received a good response from domestic investors for this initial public offering (IPO) of Rs 20,557 crore.
LIC's IPO was subscribed almost three times.
Important information related to the case:
The government has fixed the issue price of shares of Life Insurance Corporation (LIC) at Rs 949 per share.
However, LIC policyholders and retail investors will get shares at Rs 889 and Rs 904 per share, respectively.
The shares will be listed on BSE and NSE on May 17.
Since the IPO opened for subscription on May 9, the premium for LIC's shares in the gray market has fallen by nearly 70 per cent.
In such a situation, LIC shares are likely to trade below its IPO allotment price of Rs 949 per share.
Actually IPO is called gray market, where the shares of a company are auctioned.
This bidding takes place before the company's shares are listed on the stock exchanges.
Gray market premium is the additional amount that investors are willing to pay for the shares of the company.
The shares of the insurance company were trading at a discount of around Rs 30 in the gray market from the upper end of the price band.
Earlier this month, there was a sharp decline from the premium of Rs 100.
The government has raised Rs 21,000 crore by selling its 3.5 per cent stake in the insurance sector, which is a third of its initial target.
Let us inform that the IPO of LIC closed on 9 May and its shares were allotted to the bidders on 12 May.
Despite the huge volatility in the global financial markets, LIC's IPO received an overwhelming response.
The offer was oversubscribed nearly three times, led by policyholders who bid for more than six times the number of shares on offer.
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