LIC shares at 5-7% premium in grey market, may rise further, say observers

They said shares were changing hands at Rs 1,000 apiece as against an expected IPO price of Rs 950

Shares of Life Insurance Corporation (LIC) were commanding a premium of 5-7% in the grey market, said market observers.

They added that shares were changing hands at Rs 1,000 apiece as against expected IPO price of Rs 950.

“Trading activity is thin at the moment. Once the company officially announces the price band, we will see some traction. Also, the premium will go up if the market remains stable and the IPO sees strong response from institutional investors,” said a broker.