LIC bonus shares: Stock jumps 8%; Q4 results preview, target price

LIC bonus shares: Life Insurance Corporation of India (LIC) saw its shares rallying 8 per cent in Wednesday's trade after the biggest life insurer said its board would consider a maiden bonus issue on April 13. Following the development, the PSU reclaimed a market capitalisation of Rs 5 lakh crore, surging 8.02 per cent to Rs 803 apiece on Wednesday.

LIC dividend history 

Since its listing in May 2022, LIC has been a consistent dividend payer, declaring Rs 12 per share dividend for FY25, Rs 10 per share dividend for FY24 and Rs 3 per share dividend for FY23, as per data compiled from corporate database AceEquity. The insurance company has yet to announce its Q4 results date and whether it will consider a dividend for FY26. As of December 31, 2025, LIC had a total of 20.97 lakh retail shareholders. 

LIC maiden bonus issue

LIC on Tuesday said: "Life Insurance Corporation Of Indiahas informed BSE that the meeting of the Board of Directors of the Company is scheduled on 13/04/2026 ,inter alia, to consider and approve It is to inform that a meeting of the Board of Directors of the Corporation is scheduled to be held on April 13, 2026 to inter-alia consider and recommend a proposal for issue of Bonus shares in accordance with the applicable provisions, subject to approval of the shareholders of the Corporation."

While LIC stock a high of Rs 980.05 last year in June, its prevailing price is at 15.38 per cent discount to its IPO issue price of Rs 949.

A bonus issue rewards shareholders by distributing free shares from accumulated earnings without altering face value. It increases the number of outstanding shares, trims free reserves, and lowers earnings per share (EPS), prompting a downward adjustment in share price.

LIC target price, Q4 expectations
Emkay Global in a note said LIC may deliver a healthy 13 per cent growth in Annual Premium Equivalent (APE), driven by healthy growth in the Group segment and owing to a favorable base. Resultantly, for FY26E, LIC is likely to post 15 per cent APE growth, it said.

The brokerge said LIC is likely to deliver 20.5 per cent Value of New Business (VNB) margin for Q4FY26, led by continued focus on non-par products. For FY26E, 19.3 per cent VNB margin is likely to drive 26 per cent growth in VNB.

"We roll forward the target to Mar-27E and cut it to Rs 1,000 (from Rs 1,100 earlier), implying FY28E P/EV of 0.7 times," Emkay said in its latest note. 

For Q4, YES Securities is pencilling in new business growth assumptions based on trends observed till February 2026, when LIC had displayed New Business Premium (NBP)  and APE growth of 13 per cent 7 per cent over October-November 2025 period. 

"We pencil in a VNB margin expansion of 3bps QoQ based on expected business mix change," it said. The brokerage expects VNB to rise 10 per cent YoY to 3,898 crore. NBP is seen rising 7 per cent YoY to Rs 73,760 crore