LIC announces maiden 1:1 bonus issue post-listing; check record date, timeline, and other details

In a move to reward its long-term shareholders, state-owned Life Insurance Corporation of India (LIC) has announced its first-ever bonus issue since listing on the domestic bourses on May 17, 2022. The country’s largest insurer has proposed to issue bonus shares in a 1:1 ratio, which is likely to double the holdings of its nearly 22 lakh shareholders.

The issue, valued at about ₹6,352 crore, will be funded through the capitalisation of reserves, converting accumulated profits into equity without any cash outflow.

In an exchange filing on Monday evening, LIC said its board, at a meeting held on April 13, approved the issuance of bonus equity shares in a 1:1 ratio to existing shareholders as on the record date, which will be announced later. The issuance will be subject to shareholder approval.

Under the proposal, shareholders will receive one additional share for every share held, taking the total equity base from 632 crore shares to 1,264 crore shares. The paid-up capital, in turn, will expand to around ₹12,650 crore.

Currently, LIC’s authorised equity share capital stands at ₹25,000 crore, while its paid-up equity share capital is ₹6,325 crore.

The company’s financial position remains robust, with reserves and surplus (in India) at ₹1,46,440.58 crore as of December 31, 2025, and a profit after tax of ₹33,998 crore for the nine-month period ended December 31, 2025, the filing noted.

“The existing authorised equity share capital of LIC is ₹25,000 crore and the paid-up equity share capital is ₹6,324.99 crore. Post the proposed bonus issue of 1:1, the paid-up equity share capital will increase to ₹12,649.99 crore. The reserves and surplus (in India) stood at ₹1,46,440.58 crore as at December 31, 2025, and the profit after tax for the nine-month period ended December 31, 2025 was ₹33,998 crore,” LIC said in the filing.

The timeline to watch

The board approved the proposal on April 13, 2026, setting the clock ticking. LIC aims to complete the allotment within two months, on or before June 12, 2026.

A key trigger still awaited is the record date, which will determine eligibility. Investors must hold shares in their demat accounts by this cut-off date, meaning purchases need to be made before the ex-bonus date to qualify.

The proposal, however, remains subject to shareholder approval.

By increasing the number of shares in circulation and lowering the per-share price, LIC aims to boost liquidity and broaden retail participation, an important consideration given its relatively high ownership concentration, with the government holding about 96.5%. The remaining 3.5% is held by retail shareholders.

As per the exchange data, LIC has declared 5 dividends since its listing on the exchanges. In the past 12 months, it has declared an equity dividend amounting to ₹12 per share. At Monday’s closing price of ₹804.25 per share, LIC's dividend yield stands at 1.49%.