Summary:
A landmark decision in respect of the shareholders of Life Insurance Corporation of India comes in the form of the first-ever bonus share issuance by the company since its listing in May 2022. The decision of issuing bonus shares on a one-for-one basis implies that each shareholder would get 1 fully paid equity share of ₹10 each for each 1 fully paid equity share of ₹10 that is held by him or her.
The bonus issuance will be made through the utilisation of reserves and surplus to the tune of ₹6,324.99 crore as per the records of the company as on December 2025. Through this issuance, about 632,49,97,701 equity shares of ₹10 will be issued to the shareholders.
Post-issuance, the share capital of LIC is expected to double from ₹6,324.99 crore, consisting of 632,49,97,701 shares, to ₹12,649.99 crore, consisting of 1,264,99,95,402 shares. The authorized share capital will remain at ₹25,000 crore, consisting of 2,500,00,00,000 equity shares of ₹10 each.
According to the company, the bonus issuance will take place within a period of 2 months from the date of approval from the board, that is, by June 12
The 1:1 bonus issue almost doubles the stock owned by the stockholders without increasing the expense for them. In such cases, a shareholder who owns 100 stocks would get an extra 100 stocks, thereby owning a total of 200 stocks.
Yet, the total value of the investment does not increase following the issuance of the bonus share because the price per share automatically reduces. This action is mostly taken for improving the liquidity of the stock and making it cheap for investors.
After the announcement, the share price of LIC witnessed positive gains. As of 11:40 the stock price was trading at ₹833.85 per share, recording gains of 3.76. However, the stock is under pressure for the year of 2026, recording losses of about 5% since the beginning of the year.
In terms of the financials, LIC witnessed a robust performance in the December quarter. This resulted in a consolidated net profit of ₹12,930 crore-₹12,958 crore, indicating a rise of 17% when compared to ₹11,008 crore-₹11,056 crore in the same quarter the previous year.
Net premium income during Q3 reached ₹1.25 lakh crore-₹1.26 lakh crore, witnessing a 17% rise when compared to ₹1.06 lakh crore-₹1.07 lakh crore recorded in the same quarter the previous year. Total income too increased significantly from ₹2,01,994 crore to ₹2,33,984 crore.
It should be noted that the company has yet to release its results for the January-March quarter.
The Life Insurance Corporation of India was founded on September 1, 1956, and is still the largest insurance company in India as well as an institutional investor in the country. In early 2026, it had more than ₹57 lakh crore in assets under management.
LIC has made 5 interim dividend payouts since its listing on the stock market in May 2022, and it continues to enjoy a solid financial standing.
The bonus issue is an indication of the strong financial health and earnings of LIC. Doubling the number of shares will help improve the liquidity of the stock and increase the involvement of the retail segment. It is also seen as a way of rewarding the existing investors for their loyalty.
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