LIC Share Price Today, May 29, 2026: Investors tracking Life Insurance Corporation of India (LIC) might have been startled to see the stock open at nearly half of its previous closing price on Friday. Initially, it seemed as if the insurance giant had taken a one-day nose dive. The reality is very different. The seeming 50% decline was due to LIC’s maiden 1:1 bonus share issue coming into effect on May 29, which was the company’s record date. The share price dropped to reflect the greater number of shares outstanding, but shareholder wealth was unchanged. In fact, LIC shares were trading marginally higher during the session, factoring in the bonus issue.
LIC Shares Plunged Nearly 50%?
LIC shares closed at ₹830 before turning ex-bonus and opened at ₹417.60 on May 29, giving the impression of a sharp crash.
But this was a routine price adjustment because the stock went ex-bonus. LIC 1:1 Bonus Issue LIC 1:1 bonus issue means for every share you own, you will get 1 extra share.
As the number of shares doubles, stock exchanges adjust the stock price proportionally so that the company’s overall market value remains unchanged.
What Does LIC’s 1:1 Bonus Issue Mean For Investors?
A 1:1 bonus issue means investors are issued one free equity share for each share held. The number of shares will grow but the value of the investment will stay roughly the same.
For example, let’s say an investor had 100 LIC shares at Rs 830 each before the bonus issue. The total value of the investment would be Rs 83,000. Post the 1:1 bonus issue, the investor would have 200 shares with the share price adjusting to around ₹415 each. That would be around ₹83,000 in total, depending on market movements.
LIC had approved the issue of bonus shares by capitalising up to Rs 6,325 crore from its reserves and surplus. By December 31, 2025, the insurer’s reserves stood at ₹1.5 lakh crore.
Did Investors Lose Money Due To Price Adjustment?
No.
The lower share price does not imply any destruction of shareholder wealth. The adjustment is just a reflection of the fact that the bonus shares are being issued to existing investors.
On May 29, LIC shares were trading at around ₹415.45 at 11:53 AM. On an adjusted basis, stock was trading marginally higher, given the ex-bonus reference price of around ₹415 based on LIC’s previous close of ₹830 adjusted for the 1:1 bonus issue.
LIC Bonus Shares Eligibility – Who Can Get LIC Bonus Shares?
Shareholders who were in the books of LIC as of May 29 record date were eligible for the bonus shares.
Due to SEBI’s T+1 settlement cycle, investors had to purchase shares before the ex-bonus date to be eligible for allotment.
Buyers of the stock on or after May 29 will not be eligible for the 1:1 bonus allotment.
Why Companies Issue Bonus Shares?
Bonus shares are issued from a company’s accumulated reserves and are generally seen as a sign of financial strength and management confidence.
Bonus issues do not affect a company’s market capitalisation, but they can:
Boost stock liquidity
Lower the barrier to make shares available to retail investors
Enhance market participation
Indicate confidence in long term growth prospects
This is the first bonus issue for LIC since its stock market debut in May 2022.
Has LIC Investors Really Lost Money?
No, LIC shares didn’t crash 50% in one day . The apparent fall was purely a technical correction after the stock turned ex-bonus for its maiden 1:1 bonus share issue. Eligible shareholders now hold twice as many shares, with the overall value of their investment broadly unchanged immediately after the bonus adjustment. The move is largely viewed as a shareholder-friendly move to improve liquidity and broaden participation from investors.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Moneycontrol, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
