LIC’s board has approved its first-ever bonus issue in a 1:1 ratio, meaning eligible shareholders will get one bonus share for every share they already hold, backed by ₹6,325 crore from reserves and surplus. The record date is still to be announced, and the move could also support a future government stake sale.
LIC Approved 1:1 Bonus issue
LIC’s board approved a 1:1 bonus issue on April 13, 2026, which is the insurer’s maiden bonus share issuance since listing. The company said the issue will be funded by capitalising ₹6,325 crore from reserves and surplus available as of December 31, 2025.
Under this proposal, shareholders will receive one fully paid-up equity share of ₹10 for every one share already held on the record date. The bonus shares will be issued only after shareholder approval and the final record date notification.
Why this matters
A bonus issue does not change the total value of an investor’s holding immediately, but it increases the number of shares and reduces the per-share price proportionately. That often improves liquidity and makes the stock more accessible to retail investors.
For LIC, the bonus issue is also a symbolic milestone because it signals confidence in its capital strength and reserves. With reserves of more than ₹14.64 lakh crore at the end of December 2025, the company is in a strong position to issue bonus shares without straining its balance sheet.
Record date and eligibility of LIC Bonus Issue
LIC has not yet announced the record date for the bonus issue. That date will decide which shareholders are eligible to receive the bonus shares.
As a rule, investors must hold the stock before the ex-date and on the record date to qualify. Once the final date is announced, the ex-date will usually fall one trading day before it.
Impact on the stock
LIC shares were already in focus ahead of the announcement, with the stock gaining on expectations of the company’s first-ever bonus issue. The market reaction reflects the fact that bonus issues are generally seen as shareholder-friendly corporate actions.
The bonus may also make LIC more attractive if the government eventually proceeds with an offer for sale. Since the government still holds about 96.5% of LIC, a bonus issue could help broaden the float and support future divestment plans.
What investors should watch
The most important next step is the shareholder approval process and the final record date announcement. Investors should also watch how the stock behaves after the bonus issue becomes effective, since the price will adjust mechanically.
Long-term holders should focus more on LIC’s business performance, premium growth, and investment income than on the bonus alone. The bonus is a positive signal, but the real value driver will remain the insurer’s earnings trajectory and market share.
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