LIC Likely To Issue Bonus Shares for First Time

Shares of Life Insurance Corporation of India (LIC), the country’s largest government-owned insurer, surged on Wednesday. During the trading session, LIC’s stock was trading at Rs 802, up more than 8%. The rally comes amid reports that the company may consider issuing bonus shares to its shareholders for the first time. A board meeting is expected to be held soon to discuss the proposal. According to Trendlyne data, LIC had around 21 lakh retail investors as of December 2025, who could benefit if the bonus issue is announced.

In an exchange filing on April 7, LIC said a board meeting will be held on April 13 to consider issuing bonus shares. The company has not yet fixed a record date for the same.

LIC also stated that its trading window is currently closed. This means company insiders, including directors and employees, are not allowed to buy or sell shares. The trading window will remain shut for 48 hours after the announcement of financial results for the quarter and full year ended March 31, 2026.

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LIC is considering a bonus issue for the first time since its listing in 2022. The company has not issued bonus shares earlier, though it has consistently paid dividends.

Companies typically issue bonus shares from their surplus reserves. This increases the number of shares and the company’s capital while reducing reserves. It may also impact metrics such as earnings per share (EPS). Bonus shares are beneficial for investors as they receive additional shares free of cost.

In its third-quarter results for FY26, LIC reported a 17% rise in net profit to Rs 12,958 crore compared to the previous year. The growth was driven by higher income from new insurance business and investments. Premium income also rose to Rs 1,25,613 crore from Rs 1,06,891 crore in the same quarter last year.