LIC Share Price: LIC can surprise investors, know why investors are keeping their eyes on it?

Business Desk – LIC Share Price: There is a lot of movement in the shares of the government insurance company, Life Insurance Corporation of India (LIC) on Monday. The reason for this is the board meeting of the company, in which the proposal to issue bonus shares will be considered for the first time. If this decision is approved, it will be a big turning point in the history of LIC. This will also be considered an important signal for investors.

What are bonus shares, why are they important?

Bonus shares are those additional shares which a company issues to its existing shareholders without any additional cost. This move generally reflects confidence in the company’s strong financial health and future growth prospects. Although this does not change the overall market capitalization of the company, increasing the number of outstanding shares increases liquidity and makes the stock more attractive to retail investors.

Market performance and shareholding pattern of LIC

Currently, the total market capitalization of LIC is more than ₹ 5 lakh crore, making it one of the largest companies in the country. On Monday, the stock was trading with a decline of 1.3 percent. In the last three years, the stock has given returns of about 46%. However, so far in 2026 it has seen a decline of about 7%.

Moreover, the share price has fallen by more than 12% in the last six months alone. The government maintains strong control over the company, holding 96.5% stake, while the remaining 3.5% shares are held by common investors.

Tremendous increase in profits

LIC performed tremendously in the December quarter. The consolidated net profit of the company increased by 17% year-on-year to Rs 12,930 crore, which was Rs 11,008 crore in the same period last year. Also, net premium income also increased by 17% to Rs 1.26 lakh crore, which was Rs 1.07 lakh crore a year ago.

If LIC decides to issue bonus shares, it will not only increase the confidence of investors but can also bring a new rise in the stock. However, it is important to note that while a bonus issue does not directly increase the intrinsic value, it certainly has a positive impact on market sentiment.

The attention of investors is now focused on the company’s board meeting. Apart from this, the market is waiting for the January-March quarter results, which may decide the future direction of the stock. At present, LIC has once again come into the focus of investors.