In a significant move to boost investor confidence and improve stock liquidity, the Life Insurance Corporation of India (LIC) has approved a 1:1 bonus share issue. This marks the state-owned insurer’s first bonus issuance since its landmark listing in May 2022.
Key Details of the Bonus Issue
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Ratio: 1:1 — Shareholders will receive one fully paid-up equity share of ₹10 for every one share they hold.
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Capitalization: The company will capitalize ₹6,325 crore from its reserves and surplus (as of December 2025) to fund this issuance.
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Timeline: The process is expected to be completed within two months of board approval, specifically on or before June 12, 2026.
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Record Date: The official record date to determine eligibility for the bonus shares will be announced in the near future.
Financial Performance Highlights
The announcement follows a strong financial showing in the recent quarter:
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Net Profit: Rose by 17% year-on-year to ₹12,930 crore in the December quarter.
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Net Premium Income: Increased to ₹1.26 lakh crore, up from ₹1.07 lakh crore in the previous year’s corresponding quarter.
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Dividend History: While this is the first bonus issue, LIC has been consistent with payouts, declaring five interim dividends since its debut.
Market Context
The bonus issue comes at a time when LIC’s stock has faced some pressure, declining roughly 5% since the start of the year. Shares reacted positively to the news, closing up 1% at ₹809 on the NSE ahead of the formal announcement.
By issuing bonus shares, LIC aims to make its stock more accessible to retail investors and signal long-term institutional strength despite broader market volatility. Shareholders are advised to watch for the upcoming record date announcement to ensure their holdings qualify for the additional shares.
