LIC Share Price Halves to Rs 412 Today – Your Investment Is NOT Down: The 1:1 Bonus Issue Ex-Date Maths Explained for India’s 21 Lakh Shareholders

LIC share price today Rs 412 – appears to have ‘crashed’ 50% from Rs 855. It has not. Today is the LIC bonus issue ex-date. Every shareholder gets 1 free share for every share held. Total portfolio value unchanged. Allotment 1 June 2026.

The LIC share price appears to have crashed 50 percent today (29 May 2026) – falling from Rs 855.15 (its closing price on 27 May 2026) to Rs 412 on the NSE and BSE. If you opened your portfolio today and saw this, you may have felt alarmed. Do not be. This is not a crash, a scam, or a market error. Today is the ex-bonus date for LIC’s landmark 1:1 bonus issue – the company’s first since its IPO in May 2022. Every LIC shareholder who held shares as of today’s record date will receive one additional share at no cost for every share they own. The LIC share price has adjusted exactly as it should.

The Simple Maths: Why the LIC Share Price Halved

Here is the arithmetic. Before the bonus issue, if you owned 10 LIC shares at Rs 855.15 each, your total holding value was Rs 8,551.50. After the 1:1 bonus issue, you now own 20 LIC shares at Rs 427.57 each (the theoretical ex-bonus price). Your total holding value is still Rs 8,551.50. Nothing has been lost. The number of shares you hold has doubled; the price per share has halved. The ratio of total value to number of shares stays constant.

In practice, the LIC share price at Rs 412 today is slightly below the theoretical ex-bonus price of Rs 427.57 – this gap represents normal market forces: some investors who bought specifically to capture the bonus are selling after the record date, while others who missed the record date have temporarily reduced buying interest. This discount to theoretical ex-bonus price typically narrows or closes within a few sessions as the market re-prices LIC on its post-bonus fundamentals.

• Pre-bonus LIC price (27 May close): Rs 855.15
• Theoretical ex-bonus price: Rs 427.57 (Rs 855.15 / 2)
• Actual LIC share price today: Rs 412 (trades slightly below theoretical due to post-record selling)
• Your shares: DOUBLED from today’s record date – 1 bonus share for every 1 share held
• Your investment value: UNCHANGED immediately after adjustment

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LIC Bonus Issue 2026: All Key Dates

• Board Approval: 13 April 2026
• Record Date / Ex-Bonus Date: TODAY 29 May 2026
• Who is eligible: All shareholders holding LIC shares in their demat accounts as of today’s record date
• Bonus Ratio: 1:1 – one new equity share of Rs 10 each for every one existing share of Rs 10 held
• Deemed Allotment Date: 1 June 2026
• Bonus shares available for trading: From 3 June 2026 (T+2 from allotment)
• Final Dividend: Rs 10 per share (also approved alongside the bonus issue)
• LIC’s first bonus issue since: IPO listing in May 2022
• Government of India stake: 96.5% – also receives bonus shares, expanding government’s absolute share count

LIC Share Price: Before and After – 52-Week Range Adjustment

The 52-week range for LIC share price has also been adjusted to reflect the bonus. The displayed 52-week high of Rs 490 is the post-bonus adjusted equivalent of the pre-bonus 52-week high of approximately Rs 980. The 52-week low of Rs 360 is the post-bonus equivalent of approximately Rs 720. All historical price charts for LIC will show this halving as a vertical drop – but every charting platform will soon adjust historical data to show the restated (bonus-adjusted) price series, which will show a continuous line without any apparent cliff.

• LIC share price today (CMP): Rs 412
• 52-Week High (post-bonus adjusted): Rs 490
• 52-Week Low (post-bonus adjusted): Rs 360
• Note on charts: Pre-bonus price history will be restated to show half the historical prices – this is the standard exchange and charting platform adjustment for bonus issues

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Why LIC Issued Bonus Shares Now: 3 Strategic Reasons

1. Improving Liquidity and Retail Participation

At Rs 855 per share, LIC was becoming less accessible to small retail investors who buy in small quantities. The 1:1 bonus halves the per-share price to approximately Rs 412, making LIC more affordable for India’s rapidly growing SIP and retail investor base. More affordable LIC share price levels are expected to increase daily trading volumes – improving the stock’s liquidity and reducing bid-ask spreads.

2. Meeting SEBI’s Minimum Public Shareholding Requirement

The Government of India holds 96.5 percent of LIC, leaving only 3.5 percent public float. SEBI requires LIC’s public float to reach 10 percent by 16 May 2027 – up from the current 3.5 percent. While the bonus issue itself does not directly increase public float (both government and retail shareholders receive proportional bonus shares), the improved liquidity and market activity around the bonus is expected to support the government’s subsequent stake dilution plan to comply with the MPS norm by May 2027.

3. Signalling Confidence in FY27 Earnings

A bonus issue is a management signal of confidence. Companies typically issue bonus shares when they believe the future earnings trajectory is strong enough to justify the expanded equity base. LIC’s board approved the 1:1 bonus alongside Q4 FY26 results – combining the bonus announcement with a strong earnings quarter sends a message that the business is healthy and that the management believes the company can maintain earnings per share at post-bonus levels going forward.

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What Should LIC Shareholders Do Now?

Nothing. If you held LIC shares before today’s record date, your bonus shares will be allotted on 1 June 2026 and available for trading from 3 June 2026. Your demat account will show the credited bonus shares automatically. You do not need to fill any form, apply for anything or take any action. The bonus shares are allotted automatically to all eligible shareholders by the registrar.

The LIC share price at Rs 412 is now your new entry-level reference. Investors who want to buy LIC shares post-bonus can do so at this level – they will not receive the already-declared bonus shares (ex-date was today) but can participate in the fundamental growth story of India’s largest insurance company. LIC’s New Business Premium (NBP) growth, rising individual insurance penetration, and the government’s long-term holding intent make LIC a structurally interesting PSU financial sector pick. Consult a SEBI-registered advisor before investing.

FAQs on LIC Share Price and 1:1 Bonus Issue

Why did LIC share price fall 50% today?

Ans. LIC share price fell from ~Rs 855 to Rs 412 today because 29 May 2026 is the ex-bonus record date for LIC’s 1:1 bonus issue. The price has been adjusted for the bonus – you now get 2 shares at Rs 412 instead of 1 share at Rs 855. Total investment value is unchanged. Your bonus shares will be allotted on 1 June 2026 and tradeable from 3 June 2026.

When will LIC bonus shares be credited?

Ans. LIC bonus shares will be credited (allotted) on 1 June 2026 (deemed allotment date). They will be available for trading from 3 June 2026 (T+2 from allotment). LIC’s 1:1 bonus means every shareholder who held LIC shares as of 29 May 2026 record date receives 1 additional free share for every existing share held.

Is the LIC share price crash real or a bonus adjustment?

Ans. It is entirely a bonus adjustment – NOT a real crash. LIC share price appears to have halved from Rs 855 to Rs 412 because today (29 May 2026) is the 1:1 bonus issue ex-date. Shareholders receive 1 free bonus share for every share held. Total portfolio value is unchanged. This is standard corporate action – not a loss.

What is LIC’s dividend along with the bonus issue?

Ans. LIC has also announced a final dividend of Rs 10 per share alongside the 1:1 bonus issue. The dividend record date and the bonus record date are both 29 May 2026. You will receive both the bonus shares (1 extra share per share held, allotted 1 June 2026) AND the Rs 10/share dividend as an eligible shareholder.

Disclaimer: This article is for informational and educational purposes only. Nothing in this article constitutes investment advice, a recommendation to buy or sell securities, or a solicitation of any offer to buy or sell securities. Univest is a SEBI-registered research analyst (INH000014019). Readers should conduct their own research and consult a SEBI-registered investment advisor before making any investment decisions. Past performance of any stock or sector is not indicative of future results. Investments in equity markets are subject to market risks.