The Board of Directors of Life Insurance Corporation of India (LIC) has approved the issuance of bonus equity shares in a 1:1 ratio to existing shareholders, with the record date to be announced in due course.
Subject to shareholders’ nod
The proposed bonus issue remains subject to shareholders’ approval. LIC’s authorised equity share capital stands at ₹25,000 crore, while the current paid-up equity share capital is ₹6,324.99 crore. Post the 1:1 bonus issuance, the paid-up equity share capital will rise to ₹12,649.99 crore.
LIC shares closed at ₹804.25 apiece on Monday. A significant number of retail investors will be benefitted from the first-ever bonus issue since the insurance behemoth’s listing.
Strong financial position
As of December 31, 2025, LIC reported reserves and surplus of ₹1,46,440.58 crore. The company recorded a Profit After Tax (PAT) of ₹33,998 crore for the nine-month period ended December 31, 2025, underscoring its strong financial footing.
Strategic rationale behind bonus issue
The Board stated that the bonus issuance is a strategic move to reward shareholders for their continued trust and support. It also aims to create a better balance between paid-up capital and accumulated reserves, while improving liquidity and marketability by making the stock more accessible to a broader investor base.
No impact on solvency
LIC clarified that the proposed bonus issue will not impact its solvency margin or any other key financial parameters.
Steadily increased the dividend payout
LIC CEO & MD R Doraiswamy said, “Since listing in May 2022, LIC has consistently paid dividends and steadily increased the dividend per share from ₹1.50 to ₹12 over time. We have been continuously evaluating mechanisms to reward our shareholders, and we believe this proposed bonus issue marks a significant step in that direction. We thank our shareholders for their support, patience, and belief in our strategy and execution. We are confident that our transformation initiatives are delivering tangible results and will continue to drive improved outcomes.”