LIC IPO: Grey market premium for LIC shares down by 90%: ReportThe demand for the shares of Life Insurance Corporation of India (LIC) has declined significantly in the grey market ahead of its exchange listing.According to an Economic Times report, after the subscription for the LIC’s initial public offering (IPO) was closed on May 9, the grey market premium for the shares has been changing continuously for the last one week.The LIC shares are being exchanged at a minuscule premium of Rs 8-10 per share over the issue price in the unofficial market.That is 90% below the premium of Rs 100-105 per share it commanded a week earlier, the ET report added.In stock market terminology, the buying and selling of securities before they are officially issued for trading in the stock market is known as the grey market. The LIC shares will be listed on the stock exchanges on May 17.According to market observers, the grey market is expecting the LIC IPO listing to take place at around Rs 941, and this indicates that the shares may have a moderate to discounted listing. The bidders are eagerly waiting for the share allotment after the subscription for the public issue of LIC ended on May 9. The share allotment is expected to be announced on May 12.The LIC IPO has received a strong response from investors. The insurance giant’s offer has been oversubscribed nearly 2.9 times. The allocated shares for policyholders, employees, retail investors and qualified institutional investors saw oversubscription. The portion allocated for policyholders has been oversubscribed around six times while the employees bid 4.31 times the set quota. Retail investors bid 1.94 times the quota set aside for them.LIC offered shares at a price range of Rs 902-949 apiece, with a discount of Rs 60 per share for the eligible policyholders. Retail bidders and eligible company employees also got a discount of Rs 45 per share.