The subscription for LIC IPO opens today on May 4 and the shares are already trading at a premium in the grey market.
The traded grey market premium has increased from 5 percent, quoted last week, hinting at a premium listing.
LIC shares traded at a premium of Rs 85 per share in the grey market on Wednesday, against Rs 45 premium last Thursday.
The price band set for LIC shares is Rs 902-949 per share, trying to raise Rs 21000 crore.
Employees and retail investors will get shares at a discount of Rs 45 a piece to the final offer price.
The grey market is an unofficial platform, which generally tracks the expected listing price of the company.