The state-run insurance giant Life Insurance Corporation of India shares fell over 1% in early trade today. Investors are closely tracking the key date that will determine eligibility for the company’s first-ever bonus share issue since listing.

LIC recently announced a 1:1 bonus issue, under which shareholders will receive one additional fully paid-up equity share for every existing share they hold. The company has fixed May 29, 2026, as the record date to determine which shareholders will qualify for the bonus shares.

But here’s where things become important for investors. Due to the T+1 settlement cycle followed in Indian stock markets and the market holiday on May 28 for Bakrid, investors effectively have just one trading session left to buy LIC shares and become eligible for the bonus issue.

Let’s take a look at the key details every investor needs to know –

What’s the importance of May 27?

Many retail investors often assume that buying shares on the record date itself is enough to qualify for a bonus issue. However, settlement of the purchased stock does not happen instantly.

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Under the T+1 settlement system, shares purchased on a trading day are credited to an investor’s Demat account on the next trading day. Since May 28 is a market holiday, shares bought after May 27 may not get credited before the May 29 record date.

That effectively makes May 27 the last trading session for investors looking to qualify for LIC’s bonus shares.

LIC’s 1:1 bonus issue – What does it mean?

A 1:1 bonus issue simply means shareholders will receive one extra share for every share already held.

For example, if an investor currently owns 100 LIC shares, the holding would become 200 shares after the bonus allotment.

The company plans to issue these bonus shares by capitalising nearly Rs 6,325 crore from its reserves and surplus. LIC’s reserves stood at nearly Rs 1.5 lakh crore as of December 2025.

But does this mean investors instantly make double the money?

Not exactly. While the number of shares increases, the stock price generally adjusts proportionately after the bonus issue becomes effective. This means the overall value of an investor’s holding usually remains broadly unchanged immediately after the adjustment.

LIC’s Q4 earnings 

The bonus announcement came alongside a strong set of Q4FY26 numbers.

LIC reported a 23% year-on-year rise in consolidated net profit to Rs 23,467 crore during the March quarter. Net premium income also rose 12% year-on-year to Rs 1.65 lakh crore.

For the full financial year, the insurer’s net profit climbed more than 19% to Rs 57,419 crore, while assets under management increased to Rs 57.29 lakh crore.

LIC share performance

The share price of Life Insurance Corporation of India has delivered a return of nearly 4% over the last five trading sessions.

However, the stock has fallen more than 6% over the past six months. Over the last one year, the share price has surged nearly 43%. So far in 2026, the stock is down around 1%.