LIC has announced its first-ever bonus issue, with the board approving a 1:1 bonus share ratio for existing shareholders. The move will be funded through Rs 6,325 crore from reserves and surplus. Each eligible shareholder will receive one bonus share for every one share held, once the record date is fixed. The decision marks a major corporate action by India’s largest insurer and is intended to reward shareholders while improving stock accessibility.
What the 1:1 Bonus Issue Means
A 1:1 bonus issue means shareholders will get one additional share for every share already held, without any payment. The number of shares in circulation will rise, but the overall investment value usually remains unchanged immediately after the issue, as the share price adjusts proportionately.
Impact on Share Capital
- LIC’s paid-up equity capital currently stands at Rs 6,324.99 crore.
- After the bonus issue, it will increase to Rs 12,649.99 crore.
- The authorised share capital will remain unchanged at Rs 25,000 crore.
- The bonus issue will be issued only after the record date is announced.
Reason Behind the Bonus Issue
LIC said the bonus issue is meant to reward shareholders for their support and trust. It also aims to bring a better balance between paid-up capital and accumulated reserves. A larger number of shares in the market may improve trading activity and make the stock more affordable for a wider set of investors.
Financial Position and Market Performance
LIC clarified that the bonus issue will not affect its solvency margin or other financial parameters. Its reserves and surplus in India stood at Rs 1,46,440.58 crore as of 31 December 2025, while profit after tax for the nine-month period ended 31 December 2025 was Rs 33,998 crore. The stock has risen in recent sessions, but remains lower on a year-to-date basis.
Last Modified: April 27, 2026