LIC stock surges as 1:1 bonus issue record date nears
What's the story
Life Insurance Corporation of India (LIC) shares have witnessed a significant surge, rising as much as 4% to hit an intraday high of ₹813 on the BSE today. The upward momentum comes after the state-owned insurer announced a 1:1 bonus issue along with its Q4 results last week. The company has fixed May 29 as the record date for the bonus issue. The announcement has sparked investor interest, pushing the stock higher for two consecutive sessions.
Financial performance
LIC's Q4 results and bonus issue details
In its Q4 results for FY26, LIC reported a consolidated net profit of ₹23,467 crore, up 23% from ₹19,039 crore in the same quarter last year. The company's net premium income also saw a 12% increase to ₹1.65 lakh crore from ₹1.48 lakh crore in the year-ago period. As part of the bonus issue announced with these results, LIC will issue one fully paid-up equity share of ₹10 each for every existing fully paid-up equity share held by shareholders.
Market outlook
Brokerage firms optimistic about LIC's stock performance
Citigroup has maintained a 'Buy' rating on LIC with a target price of ₹1,475 per share, indicating an upside potential of over 81% from the stock's previous closing price. Bernstein has retained its 'Market Perform' rating with a target price of ₹900 per share, suggesting an upside potential of over 11%. JM Financial has also kept its 'Buy' rating on LIC and raised its target price to ₹960 per share, implying an 18% upside.