{"id":26875,"date":"2026-05-29T13:37:56","date_gmt":"2026-05-29T08:07:56","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=26875"},"modified":"2026-05-29T14:14:28","modified_gmt":"2026-05-29T08:44:28","slug":"lic-shares-halved-on-bonus-record-date","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/lic-shares-halved-on-bonus-record-date\/","title":{"rendered":"LIC Shares Halve on Bonus Issue Record Date, Actual Fall Just 1.5%"},"content":{"rendered":"<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><a href=\"https:\/\/licindia.in\/\" rel=\"noopener\">Life Insurance Corporation of India(LIC)<\/a> shares touched Rs 411.45 on the NSE on Friday, May 29, the record date for the company&#8217;s first-ever 1:1 bonus issue. The adjusted opening price of Rs 417.60 against Wednesday&#8217;s close of Rs 830 created a misleading 50% crash signal on trading screens. The actual intraday decline was 1.5%.<\/p>\n<hr class=\"border-border-200 border-t-0.5 my-3 mx-1.5\" \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">The 50% Drop That Wasn&#8217;t \u2014 What Screens Showed vs Reality<\/h2>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">LIC closed at <strong>Rs 830<\/strong> on Wednesday, May 27<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Friday, May 29 was the <strong>bonus record date<\/strong>\u2014shares opened ex-bonus at <strong>Rs 417.60<\/strong><\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Intraday low hit <strong>Rs 411.45<\/strong>, a real decline of just <strong>1.5%<\/strong> from adjusted base<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Every shareholder holding LIC before record date received <strong>one free share for every share held<\/strong><\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Total portfolio value on record date: <strong>unchanged<\/strong> in economic terms<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Screen price halved because share count doubled, not because the company lost value<\/li>\n<\/ul>\n<hr \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">At a Glance \u2014 Full Summary Table<\/h2>\n<div class=\"overflow-x-auto w-full px-2 mb-6\">\n<table class=\"min-w-full border-collapse text-sm leading-[1.7] whitespace-normal\" style=\"height: 391px;\" width=\"722\">\n<thead class=\"text-left\">\n<tr>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Item<\/th>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Detail<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Company<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Life Insurance Corporation of India (LIC)<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Bonus ratio<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">1:1<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Record date<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">May 29, 2026<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Pre-bonus closing price<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 830 (May 27, 2026)<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Ex-bonus opening price<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs. 417.60<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Intraday price (May 29)<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 411.45<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Actual price decline<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">~1.5%<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Apparent screen decline<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">~50% (bonus-adjusted)<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Government shareholding<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">~96.5%<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">First bonus issue for LIC?<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Yes\u2014first in listed history<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Tax on receipt of bonus shares<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Nil<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Capital gains cost basis<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Zero (Section 55(2)(aa), IT Act 1961)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Check live: <a href=\"https:\/\/niftytrader.in\/nse-option-chain\/lici\" rel=\"noopener\">LIFE INSURANCE CORPORATION OF INDIA Option Chain (NSE) \u2014 Live OI, PCR &amp; Greeks<\/a><\/p>\n<\/div>\n<hr class=\"border-border-200 border-t-0.5 my-3 mx-1.5\" \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">What Is a 1:1 Bonus Issue and How Does the Math Work<\/h2>\n<div class=\"overflow-x-auto w-full px-2 mb-6\">\n<table class=\"min-w-full border-collapse text-sm leading-[1.7] whitespace-normal\" style=\"height: 190px;\" width=\"710\">\n<thead class=\"text-left\">\n<tr>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Scenario<\/th>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Before Bonus<\/th>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">After Bonus<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Shares held<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">100<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">200<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Price per share<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 830<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 415<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Total value<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 83,000<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 83,000<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Face value per share<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 10<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 10<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Source of new shares<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">\u2014<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Free reserves<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The arithmetic is simple. Double the shares, half the price, same total value. No money leaves the company. No new capital is raised. LIC simply converts accumulated free reserves into equity shares and distributes them to existing shareholders proportionally.<\/p>\n<hr class=\"border-border-200 border-t-0.5 my-3 mx-1.5\" \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">LIC Bonus Issue \u2014 Key Dates and Eligibility<\/h2>\n<div class=\"overflow-x-auto w-full px-2 mb-6\">\n<table class=\"min-w-full border-collapse text-sm leading-[1.7] whitespace-normal\" style=\"height: 223px;\" width=\"751\">\n<thead class=\"text-left\">\n<tr>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Event<\/th>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Date<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Board approval of bonus issue<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">April 2026<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Record date (eligibility cutoff)<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">May 29, 2026<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Ratio<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">1:1 (one bonus share per share held)<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Face value of bonus shares<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 10 each, fully paid-up<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Source of issue<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Free reserves and surplus<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">First bonus issue in LIC&#8217;s history<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Yes \u2014 first since May 2022 IPO<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Shareholders on the register <strong>as of May 29<\/strong> qualify<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Bonus shares are <strong>fully paid-up<\/strong> from day of credit<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">No application process \u2014 shares credited automatically to demat accounts<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">If you bought LIC shares <strong>on or after May 29<\/strong>, you do <strong>not<\/strong> qualify for this bonus<\/li>\n<\/ul>\n<hr class=\"border-border-200 border-t-0.5 my-3 mx-1.5\" \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Why LIC Issued Bonus Shares \u2014 The Strategic Logic<\/h2>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">This wasn&#8217;t a routine move. LIC has never issued bonus shares before in its listed history.<\/p>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Affordability signal<\/strong>\u2014at Rs 830, LIC had drifted out of easy retail reach; at Rs 415, the stock is more accessible to small investors and new demat account holders<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Liquidity improvement<\/strong>\u2014lower per-share price typically increases daily traded volumes and reduces bid-ask spreads<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Reserve utilization\u2014issuance<\/strong>\u00a0from free reserves signals the balance sheet carries surplus well beyond operating needs<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Retail shareholder base<\/strong>\u2014a significant portion of LIC&#8217;s shareholders are its own policyholders; a lower share price encourages them to hold rather than exit<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Confidence signal<\/strong>\u2014companies typically issue bonus shares when management is confident about sustained earnings and does not need to conserve cash<\/li>\n<\/ul>\n<p>Also Check: <a href=\"https:\/\/niftytrader.in\/ltp-calculator\/lichsgfin\" rel=\"noopener\">LIC HOUSING FINANCE Free LTP Calculator For Option Chain<\/a><\/p>\n<hr class=\"border-border-200 border-t-0.5 my-3 mx-1.5\" \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">LIC&#8217;s Stock Journey Since IPO \u2014 Context That Matters<\/h2>\n<div class=\"overflow-x-auto w-full px-2 mb-6\">\n<table class=\"min-w-full border-collapse text-sm leading-[1.7] whitespace-normal\" style=\"height: 203px;\" width=\"662\">\n<thead class=\"text-left\">\n<tr>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Milestone<\/th>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Price \/ Detail<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">IPO issue price (May 2022)<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 949 per share<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">52-week high (pre-bonus, approx.)<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 1,000+ range<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Pre-bonus close (May 27, 2026)<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 830<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Ex-bonus adjusted open (May 29)<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 417.60<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Intraday trade (May 29)<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Rs 411.45<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Real decline on record date<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">~1.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">LIC listed at a discount to its IPO price and spent a prolonged period below the Rs 949 issue price \u2014 a sore point for the millions of retail investors and policyholders who subscribed at IPO. The stock has since recovered but remains below that original benchmark on a pre-bonus basis.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The bonus issue does not change that math. But it resets the psychological entry point for new buyers.<\/p>\n<hr class=\"border-border-200 border-t-0.5 my-3 mx-1.5\" \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Government Shareholding \u2014 The Free Float Problem<\/h2>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">The Government of India holds approximately <strong>96.5%<\/strong> of LIC post-IPO<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">That leaves roughly <strong>3.5% as free float<\/strong> for institutional and retail investors combined<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">The bonus issue <strong>doubles everyone&#8217;s shares proportionally,<\/strong>\u00a0including the government&#8217;s<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">The Free float percentage <strong>does not change<\/strong> as a result of the bonus<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Institutional ownership dynamics remain constrained until the government divests further<\/li>\n<\/ul>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">This is the less-discussed structural issue with LIC as a stock. Bonus shares improve per-unit affordability but do nothing to address the free float problem that limits institutional participation and index weight.<\/p>\n<hr class=\"border-border-200 border-t-0.5 my-3 mx-1.5\" \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">What Retail Investors Got Wrong on Friday Morning<\/h2>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Several common misconceptions flooded investor forums on Friday:<\/p>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Misconception 1:<\/strong> &#8220;LIC crashed 50%, sell immediately.&#8221;<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Fact:<\/strong> Price halved due to bonus adjustment, not fundamental deterioration<\/p>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Misconception 2:<\/strong> &#8220;My portfolio is down 50%&#8221;<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Fact:<\/strong> Share count doubled, simultaneously, net portfolio value unchanged<\/p>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Misconception 3:<\/strong> &#8220;I missed the bonus, should I buy now?&#8221;<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Fact:<\/strong> Ex-bonus price already reflects the adjustment; buying now gives you no bonus entitlement\u00a0 \u00a0for this issue<\/p>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Misconception 4:<\/strong> &#8220;Bonus issue means LIC is giving me free money.&#8221;<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Fact:<\/strong> No value is created; existing reserves are converted, it is a reclassification, not a gift<\/p>\n<hr class=\"border-border-200 border-t-0.5 my-3 mx-1.5\" \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Tax Treatment of LIC Bonus Shares \u2014 What You Need to Know<\/h2>\n<div class=\"overflow-x-auto w-full px-2 mb-6\">\n<table class=\"min-w-full border-collapse text-sm leading-[1.7] whitespace-normal\" style=\"height: 231px;\" width=\"722\">\n<thead class=\"text-left\">\n<tr>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Tax Point<\/th>\n<th class=\"text-text-100 border-b-0.5 border-border-300\/60 py-2 pr-4 align-top font-bold\" scope=\"col\">Detail<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Taxable at receipt?<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">No, bonus shares are not taxed when credited<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Cost of acquisition<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Zero (as per Section 55(2)(aa), Income Tax Act, 1961)<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Holding period for LTCG<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Calculated from date of allotment of bonus shares<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">LTCG rate (held over 1 year)<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Applicable as per latest Finance Act\u2014consult a tax advisor for current rates<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">STCG rate (sold within 1 year)<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Applicable as per latest Finance Act \u2014 consult a tax advisor for current rates<\/td>\n<\/tr>\n<tr>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Original shares&#8217; cost basis<\/td>\n<td class=\"border-b-0.5 border-border-300\/30 py-2 pr-4 align-top\">Unchanged, only bonus shares carry zero cost<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The zero cost of acquisition on bonus shares means your entire sale proceeds on those shares (minus exemption) are taxable as capital gains when you eventually sell. Plan your exit strategy accordingly.<\/p>\n<p><strong>The next concrete event<\/strong> for LIC shareholders is Q4 FY26 results, where new business premium growth, VNB margin direction, and any further capital management announcements will set the tone for the stock in the second half of FY26.<\/p>\n<hr class=\"border-border-200 border-t-0.5 my-3 mx-1.5\" \/>\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">FAQs<\/h2>\n<h3 class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Q: Did LIC shares actually crash 50% on May 29, 2026?<\/strong><\/h3>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">No. The 50% drop on screens was purely a bonus adjustment. LIC&#8217;s share count doubled on the record date, so the price halved mechanically. The real intraday decline on May 29 was approximately 1.5%, with shares trading at Rs 411.45 against an adjusted base of Rs 417.60 at open.<\/p>\n<h3 class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Q: How many LIC bonus shares will I receive and when?<\/strong><\/h3>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">You receive one bonus share for every share held as of May 29, 2026. Shares are credited directly to your demat account; no action is required. If you held 500 shares, you now hold 1,000. Credit timelines typically follow T+2 from record date per SEBI norms.<\/p>\n<h3 class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Q: Are LIC bonus shares taxable in India?<\/strong><\/h3>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Bonus shares are not taxable when received. Under Section 55(2)(aa) of the Income Tax Act, 1961, the cost of acquisition of bonus shares is treated as zero. Capital gains tax applies only when you sell, at 12.5% for long-term (held over one year from the allotment date) or 20% for short-term.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">\n","protected":false},"excerpt":{"rendered":"<p>Life Insurance Corporation of India(LIC) shares touched Rs 411.45 on the NSE on Friday, May 29, the record date for the company&#8217;s first-ever 1:1 bonus issue. The adjusted opening price of Rs 417.60 against Wednesday&#8217;s close of Rs 830 created a misleading 50% crash signal on trading screens. The actual intraday decline was 1.5%. The [&hellip;]<\/p>\n","protected":false},"author":11,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[2485,2478,2481,2483,2476,2475,2474,2479,2477,2484,2480,2482,2473],"ppma_author":[1523],"class_list":["post-26875","post","type-post","status-publish","format-standard","has-post-thumbnail","category-stock-market-news","tag-lic-bonus-issue","tag-lic-bonus-issue-record-date","tag-lic-bonus-shares-explained","tag-lic-ex-bonus-price","tag-lic-investor-news","tag-lic-ipo-price","tag-lic-market-cap","tag-lic-may-2026","tag-lic-nse-price","tag-lic-share-price","tag-lic-shares-fall-50","tag-lic-stock-news","tag-lic-stock-split-confusion"]," _eael_post_view_count":0,"authors":[{"term_id":1523,"user_id":11,"is_guest":0,"slug":"nikki","display_name":"Nikki Lodha","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/ae2e265bd56e0e890c866fbaa55d29846ba20cc5372adf666652268816af117e?s=96&d=mm&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/26875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=26875"}],"version-history":[{"count":12,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/26875\/revisions"}],"predecessor-version":[{"id":26888,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/26875\/revisions\/26888"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/26876"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=26875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=26875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=26875"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=26875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}