LIC board approves issuance of bonus equity shares in 1:1 ratio. Check details

The board of Life Insurance Corporation of India (LIC), at its meeting on Monday, approved the issuance of bonus equity shares in the proportion of 1:1, subject to shareholder approval.

The bonus shares are expected to be credited or dispatched within two months from the date of board approval, on or before 12 June 2026. The company proposes to issue 632.49 crore equity shares with a face value of ₹10 each, amounting to not more than ₹6,324.99 crore from its reserves and surplus.

LIC’s reserves and surplus stood at ₹1,46,440.58 crore as of 31 December 2025, while profit after tax for the nine-month period ended 31 December 2025, stood at ₹33,998 crore. Post the proposed bonus issuance, the company’s paid-up equity share capital is likely to increase to ₹12,649.99 crore from the current ₹6,324.99 crore, as per the company’s regulatory filing.

The move aims to reward shareholders, as the company had 20.90 lakh retail shareholders at the end of the December quarter, cumulatively accounting for 1.62%, as per exchange data.

“The Board decided that the proposed issuance of bonus shares in the ratio of 1:1 is an appropriate way to reward shareholders for their continued support and trust in LIC. It also helps bring a balance between paid-up capital and accumulated reserves while enhancing liquidity and marketability by making the shares more affordable and attractive to a broader range of investors,” the company said in its regulatory filing.

Further, the company clarified that the proposed issuance of bonus shares will not impact the solvency margin or any other financial parameters of LIC.

R Doraiswamy, CEO & MD, LIC, said, “Since listing in May 2022, LIC has been paying dividends consistently and has also increased the dividend per share over time from ₹1.50 per share to ₹12 per share. We have been continuously evaluating various mechanisms to reward our shareholders, and we believe this proposed bonus issue is a significant step in that direction.”

“We are thankful to our shareholders for their support, patience, and belief in our strategy and execution. We are confident that our transformation initiatives are leading to tangible results and will continue to deliver better outcomes for all,” Doraiswamy added.

LIC share price trend

The company’s shares have regained strength in April, gaining 10.75% so far and recovering much of the 14.6% decline seen in March. To be precise, the stock has been struggling to gain traction since July 2025 and has so far declined 17.40%.

The prolonged decline has also led the stock to fall 34.2% from its recent peak of ₹1,222, attained in August 2024. In terms of financials, LIC reported a 17.46% year-on-year (YoY) increase in consolidated net profit to ₹12,930.44 crore for the quarter ended 31 December 2025.

Net premium income for the quarter rose 17.76% YoY to ₹1.26 lakh crore, up from ₹1.07 lakh crore in Q3FY25.

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