LIC shares soar 5% after first-ever 1:1 bonus issue. Here’s everything you need to know

Shares of Life Insurance Corporation of India (LIC) surged as much as 5% to hit their day’s high of Rs 845 on the BSE on Wednesday after the company announced its first-ever bonus issue. The insurer said its board has approved a 1:1 bonus issue, marking the first such corporate action for its nearly 22 lakh shareholders.

Under the proposal, the company will issue one fully paid-up equity share of Rs 10 each for every existing fully paid-up equity share of Rs 10 held by shareholders as on the record date. LIC plans to capitalise up to Rs 6,325 crore from its reserves and surplus, which stood at around Rs 1.5 lakh crore as of December 31, 2025. The issue is subject to necessary approvals.

The company said the bonus shares will be credited within 2 months of board approval, on or before June 12, 2026. The record date to determine eligible shareholders is yet to be announced.

A bonus issue involves issuing additional shares to existing shareholders free of cost from a company’s reserves. While it increases the number of shares outstanding, it does not alter the overall market capitalisation, though it can improve liquidity and make the stock more accessible to investors.

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This marks LIC’s first bonus issue since its listing in May 2022. The company has declared five interim dividends so far.

In its latest available earnings, LIC reported a 17% year-on-year rise in consolidated net profit to Rs 12,930 crore for the December quarter, while net premium income grew 17% to Rs 1.26 lakh crore. The company has not yet announced the date for its March quarter results.

The stock has gained around 5% over the past month, though it remains down over 5% so far this calendar year. Over three years, LIC shares have risen nearly 47%.

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