In what comes as a major development for investors, Life Insurance Corporation of India (LIC) is preparing to issue bonus shares for the first time since its listing in 2022 . The announcement has already triggered strong market enthusiasm, with the stock rallying sharply.
Stock Surges on Bonus Buzz
LIC shares witnessed heavy buying on April 8, rising over 7% to touch ₹803.40, reflecting positive investor sentiment around the potential "free shares" announcement.
April 13: The Crucial Date
The company, in an exchange filing, confirmed that its board of directors will meet on April 13 to consider the proposal for issuing bonus shares.
- The bonus ratio (such as 1:1, 2:1, etc.) will be decided in this meeting
- The record date-critical for eligibility-will also be announced
Who Will Get the Bonus Shares?
Not every investor automatically qualifies. To be eligible:
- You must hold LIC shares in your demat account by the record date
- Only shareholders listed in company records on that date will receive bonus shares
In simple terms, if you own LIC shares before the record date and continue holding them, you qualify.
What Are Bonus Shares?
Bonus shares are additional shares issued free of cost to existing shareholders. Companies typically issue them when they have substantial reserves and want to:
- Increase their paid-up capital
- Improve liquidity of shares in the market
- Adjust earnings per share (EPS)
Why This Matters
Since its IPO, LIC has rewarded investors through dividends, but this would mark its first-ever bonus issue, making it a landmark event for shareholders.
What Investors Should Watch
- April 13 board meeting outcome
- Announcement of record date
- Declaration of bonus ratio