LIC Share Price in Focus as it Receives Shareholder Approval for 1:1 Bonus Share Issue

The Life Insurance Corporation (LIC) has approved a significant issuance of bonus shares, capitalising ₹6,324,99,77,010 from its reserves.  

This move will see eligible members receiving 1 bonus share for every existing share they hold. 

Details of the Bonus Shares Issue 

LIC's decision to issue bonus shares was passed as a special resolution, with an overwhelming majority of 99.9998% votes in favour. The corporation plans to capitalise ₹6,324,99,77,010 from its reserve and surplus for this purpose.  

Eligible members, whose names appear in the Register of Members or Beneficial Ownership statement as of the "Record Date," will receive 1 bonus equity share for every 1 existing fully paid-up equity share. 

Regulatory Compliance and Approvals 

The issuance is in accordance with several regulations, including the Life Insurance Corporation Act, 1956, and the Companies Act, 2013.  

It also adheres to the Securities and Exchange Board of India (SEBI) regulations and the Foreign Exchange Management Act, 1999. The bonus shares will be listed on stock exchanges where LIC's shares are currently traded. 

Distribution and Allotment Process 

The bonus shares will be allotted in dematerialised form and credited to the members' demat accounts. For members holding shares in physical form, the shares will be credited to a new Suspense Escrow Demat Account until the necessary documents are received. Non-resident members and foreign investors will require approval from the Reserve Bank of India (RBI) under FEMA. 

Board's Authorisation 

The Board of Directors, along with other key executives, has been authorised to execute all necessary actions for the issuance and listing of the bonus shares.  

This includes negotiating and finalising terms with regulatory authorities and ensuring compliance with applicable rules. 

Read More: LIC Share Price in Focus as Sanjay Lohiya Appointed Government Nominee Director, Replacing Shalini Pandit Effective May 13, 2026! 

LIC Share Price Performance  

As of May 19, 2026, at 10:06 AM, LIC share price on NSE was trading at ₹799.30 up by 1.00% from the previous closing price. 

Conclusion 

The approval of the bonus shares issue by LIC marks a significant event in the corporation's financial strategy. By capitalising a substantial amount from its reserves, LIC aims to enhance shareholder value and expand its equity base. 

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