On Friday trading, shares of the country’s largest insurer, Life Insurance Corporation of India (LIC), appeared to have plunged compared with the previous close on the National Stock Exchange, falling from a closing level of ₹830 to about ₹413. Market analysts, however, say the sharp-looking drop is largely illusory and is the mechanical result of a bonus share issue rather than a true loss in investor value.
LIC recently announced a 1:1 bonus issue, meaning shareholders received one additional share free for every share they already held. When the number of outstanding shares doubles after a bonus issue, the market price per share typically adjusts downward roughly in proportion. For example, an investor holding 100 LIC shares would hold 200 shares after the issue, while the total value of their holding should remain essentially unchanged immediately after the split.
That adjustment explains why Friday’s quoted per-share price is almost half the previous close. In reality, trading on Friday showed only a modest decline of 0.36 percent. Market experts stress that existing shareholders should not face any real loss from the bonus issue itself, since their proportional ownership and total holding value remain intact.
Analysts also noted that the move does not reflect a deterioration in LIC’s underlying financial performance. LIC posted a strong set of results for the quarter ending March, with net profit rising 23.2 percent year-on-year to ₹23,420 crore. For the full financial year 2025–26, net profit grew 19.25 percent to ₹57,419 crore compared with the previous year.
Investors are advised to interpret the price change in the context of the bonus share mechanics and the insurer’s solid recent earnings. Market commentators are cautiously optimistic, with some forecasting renewed upward momentum in LIC’s shares in the coming sessions.
Original Source: https://assam.nenow.in/lic-shares-appeared-to-crash-50-percent-after-turning-ex-bonus-issue/
Category: অসম,উত্তৰ-পূব,দেশ,বাণিজ্য,শীর্ষ সংবাদ
Tags:
Publish Date: 2026-05-29 15:48:00
