LIC board approves 1:1 bonus issue worth ₹6,325 crore

The board of Life Insurance Corporation of India on Monday (April 13) said it has approved a 1:1 bonus issue of equity shares amounting to ₹6,324.99 crore, subject to shareholder approval.

Under the proposal, shareholders will receive one fully paid-up equity share of face value ₹10 each for every one fully paid-up equity share of ₹10 held as on the record date. The company will issue 632.49 crore equity shares of ₹10 each, capitalising an amount not exceeding ₹6,324.99 crore from its reserves and surplus as of December 31, 2025.

Post the bonus issue, the issued, subscribed and paid-up share capital will increase from ₹6,324.99 crore to ₹12,649.99 crore. The authorised share capital remains ₹25,000 crore, divided into 2,500 crore equity shares of ₹10 each.

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The reserves and surplus available for capitalisation stood at ₹1.46 lakh crore as of December 31, 2025, based on figures subjected to limited review by joint statutory auditors. The bonus shares are expected to be credited or dispatched within two months from the date of Board approval, on or before June 12, 2026.

Based on the December quarter shareholding pattern, LIC had a total of nearly 21 lakh retail shareholders, or those who have an authorised share capital of up to ₹2 lakh. These retail shareholders had a 1.5% stake in the company. Mutual Funds and FPIs held the remaining available stake, apart from the government.

LIC, before Hyundai Motor India, was the largest Indian IPO, managing to see full subscription. The company has three different issue prices: ₹949 as the original price, ₹904 for retail shareholders, and ₹889 for existing policyholders. The stock trades all of these three levels below.

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Shares of LIC ended 0.8% higher on Friday at ₹799.65. The stock was up 10% last week but is still down 6% on a year-to-date basis.