Life Insurance Corporation of India (LIC) said on Monday that nearly 22 lakh shareholders approved the 1:1 bonus issue, which the company had announced last month.
The insurance behemoth, in an exchange filing, said that 99.9998% of its eligible shareholders voted in favour of the special resolution for the bonus share issue, along with some key managerial appointments. LIC shares gained around 2% on Tuesday, hitting an intraday high of Rs 805.5 apiece on NSE.
Key things to know about LIC bonus issue
Earlier in April, LIC's board approved the plan to issue one fully paid-up equity share of Rs 10 each for every fully paid-up equity share of Rs 10 each held by eligible shareholders as on the record date. It added that it will issue the bonus shares by capitalising up to Rs 6,325 crore out of its reserves and surplus available as on December 31, 2025, which stood at nearly Rs 1.5 lakh crore.
LIC had said that bonus shares will be credited within two months from the date of the board’s approval, that is, on or before June 12 this year.
Only those shareholders who own shares of the company as on the record date will be eligible to receive the bonus shares. The record date for LIC's bonus issue is yet to be announced.
A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolios.
While this marks the first bonus issue announced by the PSU, LIC has so far announced five interim dividends since its debut on the stock markets in May 2022.
LIC share price
LIC shares have gained around 3% in one week but declined 5% in one month and 6% in 2026 so far. In the longer term, the stock jumped 42% in three years.
LIC is set to release its results for the January-March quarter of the financial year 2026 on May 21. The company currently has a market capitalisation of more than Rs 5 lakh crore.
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