LIC Board Rewards Investors With 1:1 Bonus Equity Share Issue Approval

Introduction

Life Insurance Corporation of India (LIC), the country’s largest insurer, has announced a significant corporate action to enhance shareholder value. The board’s approval of a 1:1 bonus issue reflects confidence in the company’s financial strength and long-term growth prospects.

Details Of The Bonus Issue

Under the approved ratio, shareholders will receive one additional equity share of ₹10 each for every existing share held as on the record date, which will be announced shortly. The issuance will be funded by capitalizing reserves and surplus available as of December 31, 2025.

Strategic Significance

The bonus issue is expected to improve liquidity in LIC’s stock and broaden retail investor participation. Analysts note that such corporate actions often signal strong fundamentals and a commitment to rewarding shareholders, especially in the context of LIC’s expanding footprint in insurance and financial services.

Market Impact

With approximately 63.24 crore shares to be issued, amounting to ₹6,324.99 crore, the move is likely to attract positive sentiment in the market. Investors are advised to track the upcoming record date to ensure eligibility for the bonus shares.

Key Highlights

•⁠  ⁠LIC board approved 1:1 bonus equity share issue

•⁠  ⁠Shareholders to receive one share for every share held

•⁠  ⁠63.24 crore shares to be issued, worth ₹6,324.99 crore

•⁠  ⁠Funded by capitalizing reserves as of December 31, 2025

•⁠  ⁠Record date to be announced soon

Sources: Business Upturn, ET Now, MSN