Life Insurance Corporation of India (LIC) has approved a 1:1 bonus issue, marking a significant corporate action aimed at rewarding shareholders.
The decision was taken at the company's Board meeting held on April 13, 2026, according to an exchange filing.
Under the approved bonus ratio, shareholders will receive one fully paid-up equity share of ₹10 each for every one existing equity share held as on the record date, which will be announced in due course.
As part of the bonus issuance, LIC plans to issue approximately 63.24 crore equity shares, amounting to around ₹6,324.99 crore. The bonus shares will be issued by capitalising reserves and surplus available as of December 31, 2025.
"Since listing in May 2022, LIC has been paying dividends consistently and also increasing the dividend per share over a period of time from Rs. 1.50 per share to Rs. 12/- per share. We have been continuously evaluating various mechanisms for rewarding our shareholders and we believe this proposed bonus issue is a significant step taken by us in that direction. We are thankful to our shareholders for their support, patience and belief in our strategy and execution. We are confident that our entire transformation initiatives are leading to tangible results and will continue to yield better outcomes for all," said R Doraiswamy, MD & CEO of LIC.
Following the bonus issue, the company's paid-up equity share capital will increase significantly. The pre-bonus paid-up capital of ₹6,324.99 crore, comprising 63.24 crore shares, will rise to ₹12,649.99 crore post-issue, effectively doubling the number of outstanding shares to approximately 126.49 crore.
The insurer confirmed that the bonus shares will be issued out of free reserves and surplus, which stood at ₹14.64 lakh crore as of December 31, 2025. The issuance remains subject to shareholder approval.
LIC also stated that the bonus shares are expected to be credited or dispatched within two months from the date of approval by the Board, i.e., on or before June 12, 2026.
The move is seen as a step to enhance liquidity in the stock and make it more accessible to retail investors, while also signalling confidence in the company's financial strength and reserve position.