New Delhi: Life Insurance Corporation of India (LIC) has announced a 1:1 bonus share issue, marking a significant move to reward shareholders and enhance stock liquidity. The decision was approved by the company’s board during its meeting held on April 13, 2026.
Bonus Issue Details
LIC will issue one fully paid-up equity share of ₹10 each for every one existing share held by shareholders as of the record date, which will be announced later.
- Bonus Ratio: 1:1
- Face Value: ₹10 per share
- Approval Status: Subject to shareholder approval
- Record Date: Yet to be declared
Capital Restructuring Impact
The bonus issue will be executed by capitalising ₹6,325 crore from LIC’s reserves and surplus as of December 31, 2025.
- Current Paid-up Capital: ₹6,324.99 crore
- Post-Bonus Paid-up Capital: ₹12,649.99 crore
- Authorised Share Capital: ₹25,000 crore
The company clarified that this move will not impact its solvency margin or financial stability, maintaining confidence among policyholders and investors.
Government Stake and Future OFS Plans
The Government of India currently holds a 96.5% stake in LIC. It previously divested 3.5% through its IPO in May 2022, raising around ₹21,000 crore.
Market sources suggest that the bonus issue could pave the way for a future Offer for Sale (OFS), enabling the government to further dilute its stake in the insurance giant.
Stock Market Reaction
LIC shares closed at ₹804.25 on the BSE, registering a modest gain of 0.71% over the previous close following the announcement.
Why This Move Matters
The bonus share issuance is expected to:
- Improve stock liquidity
- Make shares more accessible to retail investors
- Enhance market participation
- Support potential future stake dilution by the government
About LIC
The Life Insurance Corporation of India (LIC) is a statutory corporation established under the LIC Act of 1956. It is India’s largest insurance company and the largest institutional investor. LIC’s primary goal is to provide life insurance and financial security to individuals, with a focus on spreading insurance widely, especially in rural areas.
Read also: LIC Q3 FY26 Profit Rises 17% YoY to ₹12,958 Crore; Premium Income and Solvency Remain Strong
