Life Insurance Corporation of India (LIC), a major player in the insurance sector, has successfully obtained shareholder approval for a 1:1 bonus issue.
The decision marks an important step in enhancing LIC's share liquidity and is seen as a reflection of the company's robust financial health.
LIC announced its first-ever 1:1 bonus share issue on April 13, 2026.
LIC's board approved the allocation of 1 bonus share for every existing share held by shareholders.
Shareholders, approximately 22 lakh in number, showed overwhelming support with 99.9998% voting in favour.
The bonus shares are worth ₹10 apiece and will be financed by capitalising up to ₹6,325 crore from the company's reserves, which totalled about ₹1.5 lakh crore as of December 31, 2025.
| Announcement date | Bonus ratio | Details (face value / funding) | Record / Ex-bonus status |
| 13 April 2026 | 1:1 | Shareholders to receive 1 free fully paid-up equity share (Face Value ₹10) for every 1 share held; financed by capitalising ₹6,325 crore from reserves; | Shareholder approval received on 19 May 2026; ex-bonus and final record dates awaited. |
This bonus issue is designed to improve the liquidity and affordability of LIC’s shares, encouraging wider participation from investors.
Although the move increases the number of shares, it does not affect the market capitalisation. The bonus shares will be credited within 2 months following the board approval, expected by June 12, 2026.
The record date to determine eligible shareholders is yet to be announced.
Since its stock market debut in May 2022, LIC has declared 5 interim dividends prior to this bonus issue.
Following the announcement, LIC shares observed an uptick, gaining approximately 2% on the NSE.
Read More: LIC Share Price in Focus; Gets Shareholder Nod for 1:1 Bonus Share Issue!
Despite a decline of 6% in 2026, LIC shares recorded a 3% gain over the past week. In the broader three-year context, the stock has appreciated by 42%.
Presently, LIC maintains a strong market capitalisation exceeding ₹5 lakh crore. The company's upcoming quarterly results for January-March 2026 are slated for release on May 21, 2026.
As of May 20, 2026, at 1:02 PM, Life Insurance of India share price on NSE was trading at ₹805.05 up by 0.19% from the previous closing price.
The approval of the 1:1 bonus issue by LIC's shareholders highlights their confidence in the insurer's financial status and growth prospects. This development aims to bolster investor interest and market engagement with LIC’s stock.
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Published on: May 20, 2026, 1:30 PM IST
Team Angel One
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