LIC Announces 1:1 Bonus Shares, First Since Listing; 632.49 Crore New Shares to Be Issued

The country’s largest insurer, Life Insurance Corporation of India, has announced a major update for its investors. The company’s board has approved a 1:1 bonus share issue, marking its first such move since listing. This means shareholders will receive one additional share for every share held as of the record date. While the number of shares will double, the overall investment value will remain unchanged as the share price will be adjusted accordingly.

Details of the Bonus Issue

LIC will issue 632.49 crore new equity shares with a face value of ₹10 each. For this, the company will capitalise up to Rs 6,324.99 crore from its reserves and surplus as of December 31, 2025. Following the bonus issue, LIC’s paid-up share capital will rise from Rs 6,324.99 crore to Rs 12,649.99 crore. The authorised share capital will remain unchanged at Rs 25,000 crore.

Strong Reserves and Shareholding

The insurer reported strong reserves of Rs 1.46 lakh crore as of December 31, 2025, supporting the bonus issue. LIC has around 21 lakh retail investors holding a combined stake of about 1.5%, while mutual funds, foreign portfolio investors and the government hold significant shares.

Why LIC Is Issuing Bonus Shares

The bonus issue is aimed at boosting investor confidence and improving stock liquidity. High share prices often deter retail investors, and bonus shares effectively reduce the price per share, making it more accessible and encouraging higher trading activity.

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Financial Performance

LIC shares have remained under pressure recently, declining about 5% so far this year, though they have shown marginal growth over the past year. The company reported strong performance in the December quarter, with profit rising 17% year-on-year to ₹12,930 crore. Net premium income also increased 17% to Rs 1.26 lakh crore.

Stock Market Movement

On April 13, 2026, LIC shares closed at Rs 809, up 1.33%, reflecting improved investor sentiment following the bonus announcement. The move is seen as a sign of management’s confidence in the company’s financial strength and future prospects.