Kolkata: LIC Bonus Issue: PSU insurance giant Life Insurance Corporation of India, or LIC in short has announced a bonus issue of shares. What’s more, the company has said that the board of directors has approved a bonus issue of shares in a 1:1 ratio. This is nothing short of a major reward for its shareholders, who were a bit disappointed by the discounted listing price of the behemoth in the summer of 2022. The record date for the issue of bonus shares hasn’t yet been announced. In simpler words, it means that if a shareholder has 10 shares, he/she will get another 10 shares of LIC free of cost. let’s see how the shareholders will benefit.
Bonus share ratio
“In its meeting held today (Monday), the Board considered and approved the issuance of bonus equity shares in a ratio of 1:1. This means that for every one fully paid-up equity share of ₹10 held by LIC shareholders as of the record date, one fully paid-up equity share of ₹10 will be issued,” LIC mentioned in a regulatory filing. The bonus shares will be issued by capitalising a sum of money as much as Rs 6,325 crore from the company’s reserves and surplus as at the end of Q3FY26. The issue of shares will be completed within two months from the date of the approval by the LIC board. In other words, by June 12.
What is bonus share issue?
Nothing gladdens the heart of an investor quite like a bonus share issue. The reason is simple — a bonus share issue comes for free. The board of the issuing company decides the bonus issue ratio ie, how many new shares will be issued for every investor. For LIC, ever shareholder will get one share for every shares held by him/her. Companies usually announce bonus issues to increase liquidity in the market, make shares a bit more affordable and even to signal a statement in the market — that they are confident of growth in the future.
LIC share movement
LIC shares ended the trading session on Monday at Rs 809, gaining 1.33%. However, thanks to the sluggish and volatile market conditions, the share has been under pressure in recent times. In 2026 so far, the share has gone down by about 5%. It gained about 3% in the past 12 months. LIC has a market cap of Rs 5.09 lakh crore.