LIC shares slipped nearly 3% on June 25, 2026, and that’s because of two reasons for this. The first was the abrupt resignation of its Chief Financial Officer Sunil Agarwal, which rattled investors. LIC announced on June 24, 2026, that Agarwal was quitting because he had “better prospects” and is to be removed on July 14, 2026. The succession of senior management in large public sector undertakings raises the possibility of continuity of financial management from one day to the next, so that was a very negative impact on market sentiment.
The second reason for the fall was technical. June 25 was the record date and ex-dividend date for LIC's last dividend of ₹10 per share for FY26. When a company turns ex-dividend, its price always goes down by the dividend amount, and LIC shares did too. The stock fell around 2.2% to ₹427 in early trading, and the ex-dividend had a big impact on the drop.
LIC shares dropped as much as 3.4% to ₹421.65 each in morning trading before rebounding slightly. At 9:39 a.m. in New York, LIC shares were down 0.26%, while the Nifty 50 index was higher by 0.50%, a sign that LIC’s decline was more company-specific than a general market trend. LIC shares have been down about 10.1% in the past year, while the Nifty 50 is down 4.4% as investors are cautious with the stock.
Even though LIC’s stocks are down short in the near term, LIC’s fundamentals remain strong. The company reported a 23.2% year-on-year increase in net profit in Q4 FY26 and strong margins. And even though the CFO’s resignation could raise questions of leadership stability in the firm, the ex-dividend decline was a normal event and a short-term one and not indicative of a deeper weakness.
LIC’s 3% fall in early trade was caused by a combination of sentiment shock from the CFO’s resignation and the technical ex-dividend adjustment. The leadership change has disturbed investors, but the dividend-related decline is a normal market process; LIC’s financial performance remains firm.
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