LIC Board Approves 1:1 Bonus Equity Share Issuance to Reward Shareholders
LIC board approves issuance of bonus equity shares in 1:1 ratio. Check details
Mint
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The Life Insurance Corporation of India (LIC) board has approved a 1:1 bonus equity share issuance, pending shareholder approval. This move aims to reward its 20.90 lakh retail shareholders and enhance share liquidity, with the total issuance valued at approximately ₹6,324.99 crore (roughly $760 million USD).
- 01LIC plans to issue 632.49 crore bonus shares at a face value of ₹10 each.
- 02The total value of the bonus shares is estimated at ₹6,324.99 crore (approximately $760 million USD).
- 03The company's paid-up equity share capital will increase to ₹12,649.99 crore from ₹6,324.99 crore.
- 04LIC's net profit for the quarter ending December 2025 rose by 17.46% year-on-year to ₹12,930.44 crore.
- 05The company's shares have recovered 10.75% in April after a decline of 14.6% in March.
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The board of the Life Insurance Corporation of India (LIC) has approved the issuance of bonus equity shares in a 1:1 ratio, pending approval from shareholders. This initiative aims to reward 20.90 lakh retail shareholders and is expected to enhance liquidity and marketability of shares. The proposed issuance involves 632.49 crore shares with a face value of ₹10 each, totaling ₹6,324.99 crore (approximately $760 million USD). Following this issuance, LIC's paid-up equity share capital will rise to ₹12,649.99 crore from the current ₹6,324.99 crore. The company reported a 17.46% year-on-year increase in net profit, amounting to ₹12,930.44 crore for the quarter ending December 2025. Furthermore, LIC's share price has shown signs of recovery, gaining 10.75% in April after a significant decline in March.
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The issuance of bonus shares will make LIC's shares more affordable, potentially attracting a broader range of investors and benefiting existing shareholders.
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