Life Insurance Corporation of India (LIC) shares declined as much as 2.2 percent to around ₹436.75 in Wednesday's afternoon trading on June 24, as the state-run insurer turned ex-dividend for its final dividend of ₹10 per share for FY26. According to reports from Moneycontrol, the decline was largely attributed to the stock adjusting for the dividend payout, with the stock marginally higher by about 0.1 percent when adjusted for the dividend. The stock has declined around 10.1 percent over the past year, compared with a 4.4 percent fall in the benchmark Nifty 50. As per Moneycontrol, June 25 has been fixed as both the record date and ex-dividend date for determining shareholders eligible to receive the payout, with June 24 being the last day for investors to purchase LIC shares to qualify for the dividend.
The company had announced the final dividend of ₹10 per equity share on May 21 while reporting its fiscal fourth quarter earnings. As reported by Moneycontrol, June 25 has been fixed as both the record date and ex-dividend date for determining shareholders eligible to receive the payout, subject to approval at the company's annual general meeting. Under India's T+1 settlement cycle, investors had to purchase LIC shares by June 24 to qualify for the dividend. In an exchange filing, LIC confirmed that its board has recommended a final dividend of ₹10 per equity share of face value ₹10 each for the financial year 2025-26 (FY26), with the proposed dividend subject to approval by shareholders at the company's fifth Annual General Meeting scheduled for July 27, 2026. The company had paid a dividend of ₹12 per share in the previous financial year.
LIC delivered robust financial results for the quarter ended March 31, 2026, with net profit increasing 23 percent year-on-year to ₹23,467 crore. As reported by Moneycontrol, the insurer's net premium income rose 12 percent YoY to ₹1.65 lakh crore during the March quarter, while investment income increased 17 percent YoY to ₹1.09 lakh crore. The strong performance reflects the company's diversified revenue streams and effective asset management capabilities. This quarterly growth trajectory provides a positive backdrop for the upcoming dividend distribution.
Despite the ex-dividend adjustment, analysts remain optimistic about LIC's long-term prospects. Emkay Global has assigned a 'Buy' rating to the stock, citing consolidation in product mix and management's focus on growing absolute Value of New Business (VNB). The brokerage increased APE estimates by 4-5 percent while raising VNB margin estimates by 200-240 basis points, resulting in 15-16 percent increase in VNB over FY27-28E. ICICI Securities also maintains a 'Buy' rating, highlighting that product mix-driven rise in VNB margin is achievable and has been demonstrated through LIC's 42 percent VNB growth in FY26. The insurer had earlier traded ex-date for its first-ever bonus issue in May 2026, issuing bonus shares in a 1:1 ratio, granting one bonus share for every existing share held by shareholders.
