The premium on shares of Life Insurance Corporation of India in the grey market climbed 80 percent on April 28, with the company’s initial public offering – the largest in the country – set to open next week.
LIC shares commanded a premium of Rs 45 over the higher end of the price band set for the IPO, compared with Rs 25 on April 27, according to IPOWatch, which tracks unofficial prices of upcoming IPOs, also known as the grey market prices. Experts expect the grey market premium to inch higher closer to the launch date.
The LIC IPO opens on May 4 and closes on May 9. The price band has been set at Rs 902 to Rs 949, with a discount of Rs 60 for policyholders and Rs 45 for employees.