- Life Insurance Corporation of India will issue bonus shares in a 1:1 ratio to shareholders
- The bonus shares will be capitalised from reserves amounting to Rs 6,325 crore
- Record date for eligibility is May 29, with May 27 as the last trading day to buy shares
State-run insurance giant Life Insurance Corporation of India has announced its first-ever bonus issue since listing on the stock exchanges, drawing strong investor interest ahead of the May 29 record date. The company will issue bonus shares in a 1:1 ratio, meaning shareholders will receive one additional equity share for every share they hold.
LIC's board approved the proposal in April and said the bonus shares will be issued by capitalising up to Rs 6,325 crore from the company's reserves and surplus, which stood at nearly Rs 1.5 lakh crore as of December 31, 2025. A bonus issue is generally viewed as a sign of financial strength and confidence in future growth prospects. While it increases the number of outstanding shares, it does not change the company's market capitalisation immediately as the stock price adjusts proportionately after the issue.
To become eligible for LIC's bonus shares, investors must hold the stock in their demat accounts on the record date of May 29. Under SEBI's T+1 settlement cycle, investors need to buy the shares at least one trading session before the record date for the shares to be credited on time. Since May 28 is a market holiday on account of Bakrid, May 27 effectively becomes the last trading day for investors to purchase LIC shares and qualify for the bonus issue.
LIC Share Price Today
LIC shares rose 2.16% on Tuesday to close near Rs 855.95, outperforming the benchmark NIFTY 50, which declined 0.47%. The stock has gained over 6.5% in the past week and more than 5.5% over the last month.
LIC Q4 Result
The insurer recently reported a strong set of Q4 FY26 numbers, with consolidated net profit rising 23% year-on-year to Rs 23,467 crore, while net premium income increased 12% to Rs 1.65 lakh crore. For the full financial year, LIC's assets under management rose to Rs 57.29 lakh crore and net profit climbed over 19% to Rs 57,419 crore.
While bonus issues do not create instant wealth as stock prices adjust after allotment, they often improve liquidity and retail participation. Investors considering LIC before the record date will largely be betting on the company's long-term growth prospects rather than just the bonus shares alone.
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