1:1 Bonus Issue For First Time By This Mega PSU: Buy LIC Stock Price Ahead Of Bonus Record Date? Target Price

Life Insurance Corporation of India, a leading PSU behemoth but also India's largest insurer, has declared its first ever bonus issue reward for investors. In a major good news, LIC will reward 1 free share to eligible investors. This will likely double the number of shares in your portfolio.

LIC Share Price:

Currently, LIC stock price is at Rs 842.40 apiece on BSE as of April 16, with a market cap of Rs 5,32,817.81 crore.

LIC Bonus Issue:

LIC has announced a bonus issue of 1:1 ratio, which means that eligible investors will get 1 free share of face value of Rs 10 each on their existing 1 equity share. This is the first ever bonus by LIC.

In its filing, LIC stated that the total number of securities proposed to be issued as bonus are 632,49,97,701 equity shares amounting to Rs 6,324.99 crore. The Bonus Shares will be issued out of Reserve & Surplus available as at December 31, 2025.

Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives, which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

LIC Bonus Issue Record Date

While LIC is yet to fix the record date for bonus issue. It has announced that they plan to complete the bonus issue rewards process within two months from the date of approval of board of directors. The tentative date for completion is on or before June 12, 2026. Hence, record date will be likely ahead of this date.

BUY LIC Stock Before Bonus Issue?

The consensus recommendation from 23 analysts for Life Insurance Corp is BUY, as per Trendlyne data. The average target price is of Rs 1048.58 apiece, which signals nearly 25% potential upside ahead.

Recently, analysts at Geojit said, "LIC financial results for Q3FY26 were resilient, helping the company sustain its leadership position in the life insurance sector, supported by a diversified product portfolio and robust operational efficiency. The company consolidated gains in the non-par segment and prioritized improvements in new business performance, expense rationalisation and channel mix. Digital processes saw substantial growth, notably in policy completions via the Ananda app."

Further, these analysts pointed out that persistency ratios are a key focus, with interventions such as increased minimum ticket size expected to drive gradual improvement. Iran-related geopolitical tensions have triggered significant notional losses in LIC's investment portfolio, weighing on its stock price. A recovery is expected as the situation stabilizes and portfolio valuations rebound. The ongoing digital transformation and product innovation position LIC for sustainable long-term growth.

Hence, Geojit has also recommended BUY with a target price of RS 934.

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