Life Insurance Corporation of India or LIC for short has said yes to a one to one bonus share issue. This means the equity capital of Life Insurance Corporation of India will be as much as it is now.
The bonus shares of Life Insurance Corporation of India will be given to the shareholders. Sent to them within two months of the board saying yes which is by June 12 2026.
The board of Life Insurance Corporation of India has said yes to a one to one bonus issue of equity shares of Life Insurance Corporation of India which’s worth up to ₹6,324.99 crore.. This needs to be approved by the shareholders of Life Insurance Corporation of India.
If this happens the shareholders of Life Insurance Corporation of India will get one paid-up equity share of Life Insurance Corporation of India for every one share of Life Insurance Corporation of India they own as on the record date. The face value of each share of Life Insurance Corporation of India is ₹10. Life Insurance Corporation of India will issue 632.49 crore equity shares by using the reserves and surplus it had as of December 31 2025.
After this the issued, subscribed and paid-up share capital of Life Insurance Corporation of India will be as much, which is ₹12,649.99 crore compared to ₹6,324.99 crore now. Life Insurance Corporation of India said that giving out bonus shares will not affect the solvency margin and other financial things of Life Insurance Corporation of India.
Life Insurance Corporation of India also said that the bonus issue will make sure there is a balance between the paid-up capital and the accumulated reserves of Life Insurance Corporation of India. It will also make the shares of Life Insurance Corporation of India more affordable and attractive to investors, which will increase liquidity and marketability of the shares of Life Insurance Corporation of India. The bonus shares of Life Insurance Corporation of India are expected to be given to the shareholders or sent to them within two months of the board saying yes which is by June 12 2026.
As of the December quarter Life Insurance Corporation of India had around 21 lakh shareholders who owned 1.5 per cent of the company.
R. Doraiswamy, who is the CEO and MD of Life Insurance Corporation of India said: “Since Life Insurance Corporation of India was listed in May 2022 it has been paying dividends consistently and also increasing the dividend per share from ₹1.50 per share to ₹12 per share over time. We have been thinking about how to reward our shareholders of Life Insurance Corporation of India. We think this proposed bonus issue of Life Insurance Corporation of India is a big step, in that direction.”
