LIC Board Approves 1:1 Bonus Share Issuance
Life Insurance Corporation of India Approves Bonus Share Issuance
On Monday, April 13, 2026, the Board of Directors of the Life Insurance Corporation of India met and approved the issuance of bonus equity shares in a 1:1 ratio. This decision was made at a meeting held today, where the Board considered and approved the issuance of bonus equity shares to the corporation's members.
As per the regulatory filing, the bonus issue will be done by capitalizing Rs 6,325 crore out of the reserves and surplus available with LIC as of December 31, 2025. This move will pave the way for further share sale or offer for sale (OFS) of LIC, as the government is reportedly working on plans to come out with an OFS of LIC.
The government currently holds a 96.5% stake in LIC, having sold 3.5% through an initial public offering (IPO) in May 2022 at a price band of Rs 902-949 a share. The share sale fetched the government around Rs 21,000 crore. Meanwhile, shares of LIC closed at Rs 804.25, up 0.71% over the previous close on the BSE.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Comparison of LIC's Share Price and Government's Stake
| Period | Govt. Stake | Share Price (Rs) | Price Range (Rs) | Share Sale (Rs crore) |
|---|---|---|---|---|
| May 2022 | 96.5% | - | 902-949 | 21,000 |
| April 2026 | 96.5% | 804.25 | - | - |
Investor Takeaway
LIC's bonus share issuance may pave the way for further share sales or offerings.
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