Wish to claim LIC bonus share, dividend payout? Here's all you need to know

LIC Bonus share: Under the proposal, shareholders will receive one fully paid-up equity share of face value ₹10 each for every one existing equity share held

LIC bonus share, LIC dividend payout:  The state-owned insurance behemoth Life Insurance Corporation of India (LIC) has announced a twin reward for shareholders, comprising a 1:1 bonus share issue and a final dividend payout, alongside reporting a record profit for FY26.

 

LIC shares, meanwhile, were trading at ₹839.70 apiece at 11:08 AM on Wednesday, down 1.78 per cent from the previous close on the NSE.

LIC bonus issue: Key dates investors should track

The insurer has informed the stock exchanges that its board has approved a bonus issue of equity shares in the ratio of 1:1. Under the proposal, shareholders will receive one fully paid-up equity share of face value ₹10 each for every one existing equity share held.   Further, the deemed date of allotment of bonus equity shares, the company said, shall be Monday, June 01, 2026.  LIC has fixed Friday, May 29, 2026, as the record date to determine shareholders eligible for the bonus issue.

 

 

Since stock markets will remain closed on Thursday, May 28, on account of Bakri Id, investors looking to qualify for the bonus issue will need to purchase LIC shares on or before Wednesday, May 27, 2026.

LIC final dividend for FY26

In addition to the bonus issue, LIC’s board has recommended a final dividend of ₹10 per equity share of face value ₹10 each for FY26. On a pre-bonus basis, this translates into ₹20 per share. The dividend proposal, however, remains subject to shareholder approval at the company’s 5th Annual General Meeting.

 

The insurer has fixed Thursday, June 25, 2026, as the record date for determining shareholders eligible for the final dividend payout.  READ | FirstCry shares fall 7% post Q4 results; margin pressure, competition weigh

LIC posts record FY26 earnings

The announcements came alongside a strong March quarter earnings performance. LIC reported a 23.18 per cent year-on-year (Y-o-Y) rise in consolidated net profit at ₹23,420.43 crore for the quarter ended March 2026, aided by healthy growth in premium collections and investment income.

 

For the full financial year FY26, net profit rose 19.25 per cent Y-o-Y to a record ₹57,419 crore, compared with ₹48,151 crore in FY25.

 

Net premium income during the March quarter increased 12 per cent Y-o-Y to ₹1.65 trillion, while net investment income climbed 17 per cent Y-o-Y to ₹1.09 trillion.

ICICI Securities retains ‘Buy’ call on LIC Stock

Brokerage ICICI Securities retained its ‘Buy’ rating on the stock and revised its target price to ₹1,280 per share. The valuation, it said, is based on 0.8x FY28 estimated embedded value (EV) of ₹10.1 trillion, compared with 0.75x earlier.

 

“Multiple upgrade seeks to reflect LIC’s commendable performance on key metrics while balancing the risks of market-driven EV sensitivity and a lower core RoEV profile versus peers on a high base,” said the brokerage in its report.

 

ICICI Securities estimates annual premium equivalent (APE) growth of 12 per cent and value of new business (VNB) margin of 21 per cent each for FY27E and FY28E.

 

The brokerage expects core return on embedded value (RoEV) at around 11 per cent for FY27E and FY28E. It added that further improvement in VNB margins and favourable investment return trends could result in positive surprises ahead.

 

According to the brokerage’s March 2026 sensitivity analysis, LIC’s embedded value would decline 6.2 per cent with a 10 per cent fall in equity markets, compared with a 6.7 per cent decline estimated earlier. However, a 100 basis-point decline in reference rates, brokerage believes, could increase embedded value by 0.3 per cent.  ==================================== 

(Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.)