This Insurance Giant Announces 1:1 Bonus Share Issue; Know More

LIC has informed the exchanges that its Board of Directors, in a recent meeting, has approved the issuance of bonus equity shares in the ratio of 1:1. This means that shareholders will receive one additional equity share for every one share held, as on the record date, which will be announced at a later stage.

The bonus issue is subject to the approval of shareholders.

Bonus Issue Details
Following the proposed bonus issue, the paid-up equity share capital of the company is expected to increase from approximately Rs 6,324.99 crore to Rs 12,649.99 crore. The authorised share capital currently stands at Rs 25,000 crore.
The company has reported reserves and surplus of around Rs 1,46,440.58 crore as of December 31, 2025. The profit after Tax for the nine-month period ended December 31, 2025 stood at Rs 33,998 crore.
The bonus shares will be issued out of the accumulated reserves of the company. The company has stated that this move is intended to maintain a balance between its paid-up capital and reserves.

Purpose of Bonus Issue
The issuance of bonus shares is aimed at rewarding shareholders for their continued support. It also increases the number of shares available in the market, which may improve liquidity and make the stock more accessible. The company has clarified that the proposed bonus issue will not impact its solvency margin or other key financial parameters.

Management Commentary
R Doraiswamy, CEO & MD of the company, stated:
“Since listing in May 2022, LIC has been paying dividends consistently and also increasing the dividend per share over a period of time from Rs. 1.50 per share to Rs. 12/- per share. We have been continuously evaluating various mechanisms for rewarding our shareholders and we believe this proposed bonus issue is a significant step taken by us 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 entire transformation initiatives are leading to tangible results and will continue to yield better outcomes for all.”

About the Company
Life Insurance Corporation of India is one of India’s leading life insurance providers, offering a wide range of insurance products and services. It has a large customer base across the country and plays a key role in the domestic insurance sector.

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Disclaimer: This article is for informational purposes only and not investment advice.