LIC Bonus Bonanza: Last Day to Buy for 1:1 Bonus is May 27

LIC has confirmed May 29 as the record date for its 1:1 bonus issue, making May 27 the last day for investors to buy shares and be eligible. This action will issue one free share for every share held, capitalizing reserves.

This bonus issue is a strong positive signal to the market, indicating the company's financial health and its intent to reward shareholders. It also aims to make the stock more accessible and liquid for its large shareholder base, potentially increasing retail participation.

LIC's stock is expected to experience heightened buying activity today, May 27, as investors rush to secure eligibility for the bonus shares. This could lead to a significant price surge and increased trading volumes, followed by a price adjustment post-ex-bonus date.

Traders should closely monitor LIC's price action and volume today. After the ex-bonus date, observe how the increased share float impacts liquidity and whether the stock maintains investor interest at the adjusted price levels.

• •LIC has set May 29 as the record date for its maiden 1:1 bonus issue.
• •May 27 is the last day for investors to buy shares for eligibility.
• •The corporate action will see the insurer issue one free share for every share held.
• •The move aims to enhance share liquidity and affordability for its over 21 lakh shareholders.
• •Risk flag: Short-term profit booking