LIC Shares Rise 5% Following Historic 1:1 Bonus Issue Announcement
LIC shares soar 5% after first-ever 1:1 bonus issue. Here’s everything you need to know
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Shares of Life Insurance Corporation of India (LIC) increased by 5% to ₹845 after the company announced its first-ever 1:1 bonus issue for its nearly 2.2 million shareholders. The proposal aims to capitalize up to ₹6,325 crore from its reserves, enhancing liquidity and accessibility for investors.
- 01LIC announced its first-ever 1:1 bonus issue, boosting shares by 5%.
- 02The company plans to capitalize ₹6,325 crore from its reserves.
- 03Bonus shares will be credited within two months of board approval.
- 04LIC reported a 17% increase in consolidated net profit for the December quarter.
- 05Shares have risen nearly 47% over the past three years.
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Shares of Life Insurance Corporation of India (LIC) surged by 5% to reach a high of ₹845 on the Bombay Stock Exchange (BSE) following the announcement of its first-ever 1:1 bonus issue. This corporate action will benefit approximately 2.2 million shareholders, allowing them to receive one additional fully paid-up equity share for each existing share they hold. The company plans to capitalize up to ₹6,325 crore from its reserves, which are around ₹1.5 lakh crore as of December 31, 2025. The bonus shares are expected to be credited within two months of board approval, with a deadline set for June 12, 2026. Although the stock has gained around 5% over the past month, it remains down more than 5% for the year. Over the last three years, LIC shares have appreciated by nearly 47%. The announcement follows a strong performance in the December quarter, where LIC reported a 17% year-on-year rise in consolidated net profit to ₹12,930 crore.
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The bonus issue is expected to improve liquidity and accessibility of LIC shares for investors, potentially attracting more retail investors to the stock.
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