By BullScreen Editorial Team 
Shares of Life Insurance Corporation of India fell nearly 2% in early trade on Monday as investors turned cautious ahead of a crucial board meeting to consider a bonus issue. The stock was down 1.78% at ₹786.20 on the National Stock Exchange around 9:23 am.
The decline comes despite growing anticipation around the insurer’s potential first-ever bonus share issuance since its listing in 2022. In an exchange filing dated April 7, LIC confirmed that its board would meet on April 13 to evaluate and recommend a proposal for issuing bonus shares, subject to shareholder approval. The record date for the bonus issue has not yet been announced.
The stock has seen volatility in recent months, touching a 52-week high of ₹980 in June 2025 and a low of ₹721.50 earlier this month, reflecting shifting investor sentiment amid broader market movements.
On the financial front, LIC reported a strong performance in the December quarter of FY26. Profit after tax rose 17.2% year-on-year to ₹12,958.22 crore, compared to ₹11,056.47 crore in the same period last year. The insurer continues to dominate the sector, maintaining a market share of 57.07% based on first-year premium income for the nine months ended December 2025.
Its individual new business premium also grew to ₹44,941 crore during the period, up from ₹42,441 crore a year ago, signaling steady demand in the life insurance segment.
Investors are closely watching the outcome of the board meeting, as a bonus issue could enhance liquidity and retail participation in LIC shares while signaling management confidence in future growth.