LIC shares: May 27 deadline for 1:1 bonus issue 2026

What is driving LIC shares this week

Life Insurance Corporation of India (LIC) has stayed in an uptrend for three straight sessions after a strong set of earnings last week and clarity on the record date for its first-ever bonus issue. The PSU stock rose over 2% on Tuesday, taking its three-day rise to 7%. The bonus record date has added to investor interest in the counter, with the market focusing on eligibility timelines under India’s settlement rules.

LIC bonus issue: ratio and key terms

LIC’s maiden bonus issue is in the ratio of 1:1. This means eligible shareholders will receive 1 new fully paid-up equity share for every 1 existing fully paid-up equity share held on the record date. In its filing, LIC stated that the bonus shares are of face value Rs 10 each, issued for every existing share of face value Rs 10.

Record date and ex-date: what LIC has announced

LIC has fixed Friday, May 29, 2026, as the record date for determining eligible shareholders for the corporate action. The insurer has also fixed May 29 as both the ex-date and record date for the bonus allotment. This aligns trading eligibility with the record date, making the settlement cycle and intervening market holidays especially important for investors trying to qualify.

Why May 27 is the effective last day to buy

Under SEBI’s T+1 settlement system, shares bought in the market are credited to an investor’s demat account the next trading day. Because eligibility is based on shareholding on the record date, investors must purchase at least one trading day before May 29.

This week’s calendar makes the cutoff tighter. Markets are closed on Thursday, May 28, on account of Bakrid (Bakri Id). As a result, Wednesday, May 27, effectively becomes the last trading day to buy LIC shares to be eligible for the bonus shares. Buying on the record date will result in missing the eligibility window.

How the 1:1 bonus affects shareholding and price

As part of the bonus issue, over 21 lakh LIC shareholders will receive one additional share for every share they hold on the record date. But the bonus does not increase the investment value by itself. The number of shares held rises, while the price per share is expected to adjust in line with the 1:1 ratio, meaning it would be halved or otherwise adjusted to reflect the larger share count.

Recent stock moves and what the market has priced in

LIC shares have seen a sharp pickup in momentum around the corporate action. Apart from the three-session rise of 7%, the stock also rose nearly 5% after a strong quarterly performance and revised earnings estimates.

Systematix Equities increased its target price to ₹970, citing a positive outlook following the quarterly performance and updated estimates. While brokerage target prices do not guarantee outcomes, the revision shows that earnings commentary has been part of the rerating narrative alongside the bonus announcement.

Expert view: caution on buying only for the bonus

Market participants have also flagged that bonus issues can attract short-term buying interest even though they do not change intrinsic value by themselves. Dr Ravi Singh, Chief Research Officer (Research) at Master Capital Services, advised against buying LIC shares only for the bonus benefit. He said the bonus issue primarily benefits existing shareholders and that a major portion of gains linked to the action may already have been realised by the market.

Another date on the calendar: LIC dividend record date

Separately, LIC has fixed June 25, 2026, as the record date for the dividend. This is distinct from the bonus record date and can matter for investors tracking multiple corporate actions in close succession.

Timeline of LIC corporate action dates

Market impact: what is confirmed, and what to watch

The confirmed market impact so far is price action and liquidity interest around the bonus timeline. LIC’s three-session rise of 7% and a 2% move on Tuesday indicate buying interest ahead of the record date, alongside the earnings-led rerating.

For investors, the practical impact is operational: eligibility hinges on purchase timing because of T+1 and the May 28 market holiday. The corporate action mechanics also matter, since the 1:1 bonus increases share count but does not automatically create gains. Any near-term volatility can be amplified when market participants trade around ex-date adjustments.

Conclusion

LIC has set May 29, 2026, as the record date for its first-ever 1:1 bonus issue, with May 27 as the effective last day to buy due to the T+1 settlement cycle and the May 28 market holiday. The stock has already moved higher in recent sessions, supported by earnings and corporate action interest. Investors tracking the counter will also keep an eye on the separate June 25, 2026, dividend record date as the next confirmed event in LIC’s calendar.