LIC Bonus Share Record Date Set for This Friday: A Buying Opportunity Amid Ongoing Uptrend?
LIC Shares Rise Ahead of Bonus Issue
The Life Insurance Corporation of India (LIC) has set a record date of May 29, 2026, for its first-ever bonus issue, sparking investor interest in the PSU counter. The company's shares have been on an uptrend, rising for three consecutive sessions, following a strong set of earnings last week and the announcement of the bonus record date. The stock rose over 2% on Tuesday, taking its three-day gain to 7%.
The last day to buy LIC shares for the bonus issue is May 27, 2026, as the company has fixed May 29 as the record date to determine shareholders eligible for the corporate action. Investors need to buy the stock at least one day prior to the record date, given the Indian stock market's T+1 settlement system.
As part of the bonus issue, over 21 lakh shareholders of LIC will receive one free share for every share held by them on the record date. However, this action will not increase their investment value, only the number of shares held, as the price per share would be halved or adjusted in tandem with the bonus issue ratio.
Analysts remain mixed on whether investors should buy LIC shares for the bonus benefit. Prathamesh Kadival, Research Analyst at Bonanza, believes that the bonus issue is less a reward for loyal shareholders and more a piece of plumbing for the eventual stake sale by the government. He notes that doubling the share count makes it easier for the government to execute a future offer-for-sale (OFS) without overwhelming the market with large ticket trades.
| Analyst | View on Buying LIC Shares for Bonus Benefit |
|---|---|
| Prathamesh Kadival (Bonanza) | No, it's mainly a benefit for existing shareholders, not new investors |
| Dr Ravi Singh (Master Capital Services) | No, major chunk of gains are already realised by the market |
Dr Ravi Singh, Chief Research Officer (Research) at Master Capital Services, also advised against buying LIC shares for the sake of the bonus benefit, as he believes the major chunk of gains on the back of the action are already realised by the market. However, he finds LIC stock a good bet from a long-term perspective, citing the company's solid fundamentals, improving profitability, and reasonable valuations compared to private insurers.
LIC's latest earnings reinforce analysts' positive view on the counter. The company's standalone net profit for the March quarter rose 23.2% YoY to ₹23,420 crore, taking full-year FY26 profit after tax to ₹57,419 crore, a 19.25% jump. The operating metrics underline a genuine shift in business quality, with annualised premium equivalent (APE) growing about 22% YoY in Q4, and value of new business (VNB) surging 66.7% to ₹5,891 crore.
Investor Takeaway
Investors should consider buying LIC shares before the record date to be eligible for the bonus issue.
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