India’s largest insurer, Life Insurance Corporation of India, has announced the first ever bonus issue. The board has approved a bonus issue of 1:1 ratio. The bonus issue is backed by Rs 6,325 crore from reserves and surplus.
In a regulatory filing, the company stated, “The Board of Directors of Life Insurance Corporation of India (LIC) in their meeting held today, inter alia considered and approved the issuance of bonus equity shares in the proportion of 1:1, to the existing shareholders as on record date, which shall be announced subsequently.”
This means eligible shareholders will get one bonus share for every one held. The record date for the bonus issue hasn’t been announced yet.
Let’s take a look at the key details every investor need to watch out –
What does a 1:1 bonus issue mean?
A 1:1 bonus issue is simple in concept.
For every one share held, investors will get one extra share without paying anything.
However, the overall value of the investment usually remains the same immediately after the bonus, as the stock price adjusts proportionately.
How the share capital will change
The bonus issue will significantly increase the company’s share base. LIC currently has a paid-up equity capital of Rs 6,324.99 crore.
After the bonus issue, this will double to Rs 12,649.99 crore. The authorised share capital remains at Rs 25,000 crore.
“The existing authorised equity share capital of LIC is Rs 25,000 crores and the paid-up equity share capital is Rs 6,324.99 crore. Post the proposed bonus issuance of 1:1, the paid-up equity share capital shall increase to Rs 12,649.99 crores. The Reserves & Surplus (In India) stood at Rs 1,46,440.58 crores as at 31st December 2025 and the Profit After Tax for the nine-month period ended 31st December 2025 was Rs 33,998 crores,” the company said in the regulatory filing.
Why LIC is issuing bonus shares
According to the company, the bonus issue is aimed at rewarding shareholders and making the stock more accessible.
The filing noted, “The Board decided that the proposed issuance of bonus shares in the ratio of 1:1 is an appropriate way to reward the members for their continued support and trust in LIC and helps in bringing a balance between paid-up capital and accumulated reserves.”
It also added that the move could improve trading activity in the stock by increasing the number of shares in the market, making them more affordable for a wider set of investors.
Importantly, LIC clarified that the bonus issue will not affect its financial strength. “Further it is clarified that the proposal of issue of bonus shares shall not impact the solvency margin and any other financial parameters of LIC.”
LIC share price performance
The LIC share price has risen around 9% in the past five sessions and gained about 4% over the last one month.
However, on a year-to-date basis, the stock is still down nearly 5% in 2026.
In terms of price range, the stock has touched a 52-week high of Rs 980, while the 52-week low stands at Rs 721.5.