Top News

Shares of Life Insurance Corporation of India (LIC) broke out of a multi-week rangebound trend on Friday morning, jumping nearly 5% as investors rushed to qualify for the company's mega capital return program.

The state-owned insurance behemoth saw its stock price climb to an intraday high of ₹839 per share on the National Stock Exchange (NSE). The buying frenzy follows a major post-market announcement on Thursday, where LIC finalized May 29, 2026, as the official record date for its first-ever 1:1 bonus share issue since listing.

Under the plan, which recently received near-unanimous approval from 22 lakh shareholders, eligible investors will receive one free equity share for every share they hold on the record date. The move effectively doubles the company’s outstanding share count to 1,265 crore shares.

Massive Dividend Sweetens Shareholder Returns

While the market knew a bonus issue was coming, the stock surge was aggressively fueled by a higher-than-expected dividend declaration. LIC Managing Director and CEO R. Doraiswamy announced a final dividend of ₹10 per share on a post-bonus basis.

On a pre-bonus baseline, the total cash payout to investors stands at ₹20 per share for the full fiscal year. This marks a sharp scale-up from the ₹12 per share dividend declared in the previous financial year.

According to exchange filings, the total capital required for the bonus issue stands at ₹6,325 crore. This capital will be fully absorbed from LIC's massive reserves and surplus pool, which exceeded ₹1.5 lakh crore at the end of December. The newly issued bonus shares are expected to be credited to eligible demat accounts on or before June 12, 2026.

Solid Core Earnings Back Multi-Month Pivot

The aggressive shareholder rewards program is fully supported by the company's financial metrics. The finalization of the bonus timeline accompanied the formal release of LIC's fourth-quarter corporate earnings.

The insurer registered a solid 23.2% year-on-year increase in standalone net profit, which arrived at ₹23,420 crore for the March quarter. Net premium income also witnessed a healthy 12% expansion to reach ₹1.65 lakh crore.

Looking ahead, global institutional brokerages issued positive target upgrades for the stock. Analysts noted that the dual combination of a lower post-bonus share price and a strong 19% expansion in full-year net profit will significantly boost retail liquidity and long-term participation in the PSU stock.