First-Ever Bonus Issue Alert! LIC Shareholders Approve 1:1 Bonus Shares Ahead of Q4 Results; Check Record Date

Insurance behemoth Life Insurance Corporation of India (LIC) has received overwhelming shareholder approval for its first-ever bonus share issue, marking a significant milestone for the country's largest life insurer and one of India's most valuable public sector enterprises. Nearly 22 lakh shareholders voted in favour of the proposal, with 99.9998% of eligible votes supporting the special resolution.

LIC First Ever Bonus Share: Shareholders Approve 1:1 Bonus Issue; Check Record Date, Face Value & All

Under the approved proposal, Life Insurance Corporation of India will issue one fully paid-up equity share of face value Rs 10 for every one existing equity share held by investors.

The bonus issue was first approved by the board in April 2026 and will be financed by capitalising up to Rs 6,325 crore from the insurer's reserves and surplus, which stood at nearly Rs 1.5 lakh crore as of December 31, 2025.

1: 1 Bonus Share Alert! LIC Bonus Record Date and Credit Timeline

The company has stated that the bonus shares will be credited to eligible shareholders within two months of the board's approval, placing the expected deadline on or before June 12, 2026.

Investors will qualify for the bonus shares if they hold LIC stock on the record date, which has not yet been announced. The company is expected to communicate this date separately in due course.

A bonus issue allows a company to reward shareholders by converting a portion of accumulated reserves into additional equity shares, without requiring any fresh investment from shareholders.

Although the total number of shares increases, the company's overall market capitalisation remains unchanged immediately after the issue. The lower post-bonus share price often improves trading liquidity and makes the stock more affordable for a broader base of investors.

First Bonus Since LIC's Stock Market Listing

This is the first bonus issue announced by Life Insurance Corporation of India since its listing in May 2022, making it a landmark event for shareholders.

Since going public, the insurer has declared five interim dividends, reflecting a consistent approach to shareholder returns.

LIC Q4 Results This Week: Check This PSU Stock's Performance

LIC shares gained around 3% over the past week amid optimism surrounding the bonus issue. However, the stock remains down about 5% over the past month and 6% so far in 2026. Over the last three years, the shares delivered returns of approximately 42%.

The insurer is scheduled to announce its January-March quarter and full-year FY26 financial results on May 21, 2026. With a market capitalisation exceeding Rs 5 lakh crore, Life Insurance Corporation of India continues to be one of India's most influential financial institutions and a bellwether among PSU stocks.

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