LIC Gives 1 Free Share for Every Share You Own: Dividend of Rs 10 Per Share and All Record Dates Explained

May 22, 2026
Posted by: Kashish Aggarwal
Category: News

LIC’s board approved a 1:1 bonus issue and Rs 10 final dividend for FY26. Record date for bonus: 29 May 2026. Dividend record date: 25 June 2026.

Life Insurance Corporation of India announced its first-ever 1:1 bonus issue since listing in May 2022, alongside a final dividend of Rs 10 per share for FY26. The announcements were made after the board approved Q4 FY26 results showing a 23 percent year-on-year jump in net profit to Rs 23,467 crore. Every shareholder who holds LIC shares on 29 May 2026 will receive one free equity share for every share they own.

Table of Contents

LIC Bonus Issue: Key Details

Bonus Ratio: 1:1, one free equity share of Rs 10 face value for every one existing share held
Record Date for Bonus: 29 May 2026 (Friday)
Deemed Date of Allotment: 1 June 2026 (Monday), per SEBI regulations
Reserves Capitalised: Rs 6,325 crore, doubling paid-up capital from Rs 6,325 crore to Rs 12,650 crore
Subject to: Shareholder approval at the AGM scheduled for 27 July 2026

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LIC Final Dividend FY26: Key Details

Dividend Amount: Rs 10 per equity share (face value Rs 10)
Record Date for Dividend: 25 June 2026
Pre-Bonus Equivalent: Rs 20 per share on pre-bonus basis (since share count doubles after bonus)
Subject to: Shareholder approval at AGM on 27 July 2026
FY25 dividend: Rs 12 per share | FY24: Rs 10 per share (interim Rs 4 + final Rs 6) | FY23: Rs 3 per share

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LIC Q4 FY26 Results That Triggered the Announcements

Q4 FY26 Net Profit: Rs 23,467 crore (+23% YoY)
FY26 Full Year Net Profit: Rs 57,453 crore (+19% YoY from Rs 48,320 crore in FY25)
Annual Net Premium Income: Rs 5.38 lakh crore (+10% YoY from Rs 4.90 lakh crore)
Government Stake in LIC: 96.5%, government receives approximately Rs 6,100 crore from this dividend

The bonus issue has a strategic dimension beyond rewarding shareholders. The government must reduce its LIC stake from 96.5 percent to below 90 percent (meeting SEBI’s 10 percent minimum public float norm) by May 2027. Doubling the share count through the 1:1 bonus issue makes future government stake sales through OFS much easier, the government can sell a smaller percentage of a larger share count to raise the same amount of money, reducing per-session market impact.

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What the Bonus Issue Means for LIC Shareholders

If you hold 100 LIC shares on 28 May 2026 (one day before the record date of 29 May), you will receive 100 bonus shares credited to your demat account by 3 June 2026. Your total LIC holding becomes 200 shares. The LIC share price will adjust downward on the ex-bonus date to reflect the doubling of shares, if LIC is at Rs 800 before the ex-bonus date, it will open at approximately Rs 400 on the ex-date. Your total portfolio value in LIC stays the same immediately after the bonus issue, but you own twice as many shares at half the price. Over time, if LIC’s earnings per share recover (which is the bet), your total value increases.

FAQs on LIC Bonus Issue and Dividend

What is the record date for the LIC bonus issue?

Ans. The record date for the LIC 1:1 bonus issue is 29 May 2026. Shareholders holding LIC shares as of this date will receive one free share for every one share they hold. The deemed date of allotment for bonus shares is 1 June 2026.

What is the LIC final dividend for FY26?

Ans. LIC declared a final dividend of Rs 10 per share for FY26, subject to shareholder approval at the AGM on 27 July 2026. The record date for dividend eligibility is 25 June 2026. On a pre-bonus basis, this is equivalent to Rs 20 per share since the share count doubles after the bonus issue.

How does the LIC bonus issue affect the share price?

Ans. The LIC share price adjusts downward on the ex-bonus date in proportion to the bonus ratio. In a 1:1 bonus issue, the share price adjusts to approximately half the pre-bonus price. Your total portfolio value in LIC remains the same immediately after the adjustment, but you now hold twice as many shares.

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Disclaimer: Investment in the share market is subject to risk. This article is for informational and educational purposes only and does not constitute investment advice. Verify all numbers before investing. Consult a SEBI-registered advisor before making investment decisions.

Author: Kashish Aggarwal

Kashish Aggarwal is a Financial Content Writer at Univest, covering Indian equity markets with a focus on share price target frameworks, technical analysis education, and sector deep-dives. Her published work spans bull-case/bear-case share price analysis, event-driven stock reactions, and beginner-friendly educational guides. Her articles blend fundamental analysis (analyst consensus targets, P/E, loan book quality, margin dynamics) with technical analysis (moving averages, 200-DMA, support/resistance levels) — giving retail investors a complete framework before any position. All articles are reviewed by Univest's in-house equity research team, led by Ankit Jaiswal, Senior Equity Research Analyst, to meet SEBI editorial standards. Coverage Areas • Share price targets — REC Ltd, Adani Green Energy (bull/bear case frameworks) • Event-driven analysis — Redington (US tariff impact), Star Cement (technical breakdown) • Technical analysis education — Direct Market Access, 200-DMA, indicator interpretation • Thematic listicles — Highest Dividend Paying Stocks, Real Estate Penny Stocks, Intraday Picks • Sector coverage — IT distribution, renewable energy, infrastructure finance, cement, real estate