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Can Life Insurance Corporation of India Sustain Momentum After the Bonus Issue?

Can Life Insurance Corporation of India Sustain Momentum After the Bonus Issue?

Source: shutterstock

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Highlights

  • LIC announced a 1:1 bonus issue alongside FY26 final dividend recommendation.
  • Board approved accounting policy amendment related to investment income recognition methodology.
  • LIC shares gained over 2 percent following FY26 results and corporate action announcements.

Shares of Life Insurance Corporation of India (NSE:LICI) remained in focus during Friday’s trading session after the company announced a bonus issue, final dividend and audited FY26 financial results. LIC share price traded around Rs 817.00 on May 22, 2026, up 2.10 percent intraday on the National Stock Exchange of India Limited.

The stock touched an intraday high of Rs 839 compared with the previous close of Rs 800.20. The company informed exchanges that its board approved multiple proposals during the meeting held on May 21, 2026.


Source: TradingView

LIC Announces 1:1 Bonus Issue

The board fixed May 29, 2026, as the record date for the proposed 1:1 bonus issue. Eligible shareholders will receive one additional fully paid-up equity share for every existing fully paid-up equity share held. The deemed allotment date for the bonus shares has been fixed as June 1, 2026, in accordance with applicable SEBI regulations.

The company also recommended a final dividend of Rs 10 per equity share of face value Rs 10 each for FY26, subject to shareholder approval at the upcoming annual general meeting. LIC fixed June 25, 2026, as the record date for determining shareholder eligibility for the proposed final dividend.


Source: Analysis by Kalkine 

Stock Performance Trends

The stock has shown mixed returns across various timeframes when compared with the NIFTY 500 index. Over the past one week, the stock advanced 2.34 per cent, outperforming the benchmark index gain of 0.62 per cent, indicating stronger short-term momentum.

However, returns remained negative over the one-month and year-to-date periods, with declines of 0.32 per cent and 4.10 per cent respectively. On a one-year basis, the stock slipped 3.29 per cent, while the NIFTY 500 posted a marginal gain of 0.33 per cent. Despite the recent weakness, the stock delivered a solid 41.62 per cent return over the last three years, reflecting long-term value creation.


Source: NSE

Key Risks Investors Should Track

  • Regulatory changes may affect insurance sector profitability and capital requirements.
  • Market volatility could impact investment income and portfolio valuations.
  • Changes in accounting policies may affect reported earnings comparability.
  • Competition from private insurers may influence premium growth trends.

Summary

LIC shares (NSE:LICI) remained active after the company announced a 1:1 bonus issue, final dividend recommendation and FY26 audited results. The insurer also approved amendments to its accounting policy related to investment income recognition. Investors may continue monitoring bonus share implementation, dividend timelines, policy changes, insurance premium growth and broader market conditions while tracking LIC stock performance.

FAQs

Q: What bonus issue did LIC announce for shareholders?
A: LIC announced a 1:1 bonus issue, offering one additional share for every existing equity share held.

Q: What is LIC’s final dividend recommendation for FY26?
A: LIC recommended a final dividend of Rs 10 per equity share for the FY26 financial year.

Q: When is LIC’s bonus issue record date scheduled?
A: LIC fixed May 29, 2026, as the record date for determining bonus share eligibility.

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