LIC announces its first-ever 1:1 bonus issue. Check key dates, issue size and other details

Insurance behemoth Life Insurance Corporation of India (LIC) has announced a 1:1 bonus issue, marking its first-ever such move for nearly 22 lakh shareholders. The company’s board approved the corporate action at its meeting on Monday.

LIC said it will issue one fully paid-up equity share of Rs 10 each for every fully paid-up equity share of Rs 10 each held by eligible shareholders as on the record date. It added that it will issue the bonus shares by capitalising up to Rs 6,325 crore out of its reserves and surplus available as on December 31, 2025, which stood at nearly Rs 1.5 lakh crore. This is, however, subject to approvals.

LIC bonus issue timeline

LIC noted that the bonus shares will be credited within two months from the date of the board’s approval, that is, on or before June 12 this year.

Only those shareholders who own shares of the company as on the record date will be eligible to receive the bonus shares. The record date for LIC’s bonus issue is yet to be determined.

A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolios.

While this marks the first bonus issue announced by the PSU company, LIC has so far announced five interim dividends since its debut on the stock markets in May 2022.

LIC Q3 snapshot

For the December quarter, LIC reported a 17% year-on-year increase in consolidated net profit to Rs 12,930 crore, compared with Rs 11,008 crore in the same period last year. Net premium income for Q3FY26 stood at Rs 1.26 lakh crore, up 17% from Rs 1.07 lakh crore a year earlier. The company has not yet announced the date for its January-March quarter results.

LIC shares have gained around 5% in one month, but declined over 5% since the beginning of the year. In the longer term, the stock gained nearly 47% in three years.

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