Shares of India's biggest insurer, Life Insurance Corporation of India (LIC), appeared to be trading nearly 50 per cent down in early trade on Friday. However, this sharp fall is not a destructive decline as the LIC's shares adjusted to its first-ever 1:1 bonus issue after the state-run insurer's stock turned ex-bonus.
In morning trade, LIC shares were quoted at Rs 416.10, down 49.87 per cent from the previous closing value. This fall reflects the adjustment for the 1:1 bonus issue. The development does not lower the investment of the existing shareholders as they will receive one additional equity share for every share held.
Meanwhile, the adjusted shares were trading slightly up. Last seen, the stock was trading at Rs 415.70, up 0.17 per cent or 0.70 per cent.
LIC announced the bonus issue earlier in April. This is the public sector insurer's first such corporate action since its shares made their debut on stock exchanges in 2022. The board approved the issue of bonus shares in the ratio of 1:1, effectively doubling the paid-up equity share capital of the company.
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Share Market Today
The domestic stock indices were trading flat in the afternoon trade, giving up the opening hour gains. At the time of writing, Sensex was trading at 75,812.67, down 0.073 per cent or 55.12 points. Nifty50 quoted at 23,854.70, down 0.22 per cent or 52.45 points.
The Brent crude was trading at a level of $92-93 per barrel. The crude rate fell after the US-Iran agreement to 60 days of ceasefire.
Disclaimer: This story is for informational purposes only. It should not be considered as investment advice.