Shares of Life Insurance Corporation of India (LIC) saw a strong rise on April 15 after the company announced a bonus share issue.
The announcement was made on April 13, and its impact was clearly visible in the stock market. By 11 AM on April 15, LIC shares were trading at Rs 834, up by 3.68 percent.
1:1 Bonus Shares – What It Means for Investors
LIC has approved a bonus issue in a 1:1 ratio. This means shareholders will receive one additional share for every one share they already hold.
The company will use Rs 6,325 crore from its reserves and surplus to issue these bonus shares. The record date for eligibility will be announced soon.
At present, the Government of India holds a 96.5 percent stake in LIC. The company was listed in May 2022, with an IPO price band of Rs 902–949 per share, and shares were allotted at Rs 949.
Bonus Issue May Open Door for Future OFS
The bonus share announcement is also important because it could make it easier for LIC to launch an Offer for Sale (OFS) in the future.
According to sources, the government may consider selling some of its stake through OFS.
LIC’s financial position remains strong. The company has:
Authorized capital of Rs 25,000 crore
Paid-up capital of Rs 6,325 crore
Reserves and surplus of Rs 1.46 lakh crore (as of December 2026)
In the first nine months of FY26, LIC reported a profit of Rs 33,998 crore.
When Will Investors Receive Bonus Shares?
LIC has said that the bonus issue process will be completed within two months from April 13.
This means eligible shareholders are likely to receive bonus shares in their demat accounts before June 12.
This will be LIC’s first-ever bonus issue since its stock market listing.
How Will Bonus Shares Benefit Investors?
Bonus shares increase the number of shares you own, but they do not increase the total value of your investment immediately.
This is because the share price adjusts after the bonus issue.
However, investors may still benefit in the long term. LIC also has a strong dividend track record and has paid five interim dividends since its listing in 2022.
