LIC stock halves after 1-for-1 bonus, price at ₹416.10
LIC's stock took a sharp 50% dip on Friday morning, but don't panic, it's not as bad as it sounds.
The plunge happened because LIC gave out a 1-for-1 bonus share, meaning investors holding LIC shares as of the May 29 record date will receive an extra share for each one they owned.
The new price (₹416.10) just reflects this adjustment, and if you look closer, the stock actually saw a tiny gain of 0.2% after the dust settled.
LIC 1st-ever bonus doubled shares
This was LIC's first-ever bonus issue since it hit the stock market in 2022, doubling its total shares overnight.
The record date to qualify for the bonus was May 29, so there was a rush of investor interest leading up to it.
People were hoping for better liquidity and more action from retail investors.
Even with Friday's surprise drop, there was a rush of investor interest leading up to it.