LIC bonus shares: Shares of Life Insurance Corporation of India (LICI) might be showing up to 55 per cent in some trading apps today as state-run life insurance players ex-date for bonus issue today. The insurance major had announced to issue bonus shares for its eligible shareholders who will receive one new share of LIC in 1:1 ratio.

LIC of India had announced to issue 6,32,49,97,701 bonus shares with a face value of Rs 10 each, fixing Friday, May 29 as the record date to determine the eligibility for the same. The company announced Monday, June 01, as the deemed date of allotment and the effective listing of the bonus shall be done on Tuesday, June 02.

LIC of India has issued one share with a face value of Rs 10 each for every one share held with a face value of Re 1 each held as on the record date. Only those shareholders who hold the stock as of the record date will be eligible to receive the bonus shares of Life Insurance Corporation of India. Investors buying the stock on or after the ex-demerger date will not be considered eligible.

Shares of LIC of India settled at Rs 428.55 on Friday and opened at Rs 829.90 on Wednesday, post the adjustment of 1:1 bonus. It is possible that trading apps of certain brokerages might be showing the unadjusted share price for yesterday and, thus, suggesting a more than 48 per cent-odd fall on the counter from its previous close.

Investors holding LIC shares from their IPO price of Rs 949 per share, and today's settling price might be showing a Rs 54.85 per cent fall for the investors. Retail investors, who got a discount of Rs 45 per share in the IPO, would be seeing a 52.6 per cent fall in the counter. Similarly, policyholders are witnessing a 51.8 per cent fall in the counter, compared to their IPO price of Rs 889, after a Rs 60 discount.

Post adjustment of bonus issue, shares of LIC of India dropped nearly 2.85 per cent to Rs 416.30 on Friday, with its total market capitalization falling to Rs 5.30 crore mark. The stock has tumbled nearly 15 per cent from its adjusted 52-week high at Rs 490.03, hit on June 30, 2025. The stock gained nearly 16 per cent from its adjusted 52-week low at Rs 361, hit on April 04, 2026.

Government of India owns 96.50 per cent stake in LIC of India. It sold 3.5 per cent in May 2022 via its IPO to raise a total of Rs 20,557 crore. Some reports suggest that the government of India may sell 2 per cent stake in the company by June or July 2026 to raise up to 10,000 crore via offer-for-sale or qualified institutional placement (QIP).
 

LIC Q4 results
Life Insurance Corporation of India reported a 23 per cent YoY jump in the net profit at Rs 23,467 crore, while its net premium income rose 12 per cent YoY to Rs 1.65 crore for the January-March 2026 period. The state-run life insurance behemoth's investment income saw a 17 per cent YoY to Rs 1.09 lakh crore. Its board approved a dividend of Rs 10 apiece for the shareholders.
 

LIC target price
ICICI Securities believes that product mix-driven rise in VNB margin is achievable – well demonstrated by LIC in 42 per cent VNB growth in FY26. Management remains confident of growth (both par/non-par) and recovering persistence via internal measures while underlining the scope for further improvement (gradual) in margins.

Deeply discounted valuation (near 0.5 times P/EV, basis FY28E) is unwarranted. Higher volumes pose near-term tailwinds while longer-term risk includes any adverse regulations," it added, giving it a 'buy' rating and a target price of Rs 615 (post bonus issue adjustment), suggesting a xx per cent upside in the stocks.

HDFC Securities builds in APE/VoNB CAGR to 6 per cent/9 per cent over FY26-FY28E and expects VNB margin expansion to continue on the back of improvement in product profiles to 22.5 per cent by FY28E. "We revise RoEV estimates to 10.5 per cent during FY26-28E, primarily on account of the unwinding, higher dividend payout ratio and VNB and maintain 'add' rating and with a revised target price of Rs 555.

Systematix Institutional Equities maintains a 'buy' rating for the company with a revised price target of Rs 485 valuing the company at 0.6 times on its FY28E EV per share of Rs 803.50. Further we assign Rs 43 value to its associates. Targets and numbers from the brokerage have been adjusted to the bonus issue.