LIC Board Approves Bonus Equity Share Issue in 1:1 Ratio

LIC Approves Bonus Share Issue to Reward Shareholders

The board of Life Insurance Corporation of India (LIC) has approved the issuance of bonus equity shares in the proportion of 1:1, subject to shareholder approval. The bonus shares are expected to be credited or dispatched within two months from the date of board approval, on or before 12 June 2026.

The company proposes to issue 632.49 crore equity shares with a face value of ₹10 each, amounting to not more than ₹6,324.99 crore from its reserves and surplus. As of 31 December 2025, LIC's reserves and surplus stood at ₹1,46,440.58 crore, while profit after tax for the nine-month period ended 31 December 2025, stood at ₹33,998 crore.

The proposed bonus issuance will increase the company's paid-up equity share capital to ₹12,649.99 crore from the current ₹6,324.99 crore, as per the company's regulatory filing. This move aims to reward shareholders, as the company had 20.90 lakh retail shareholders at the end of the December quarter, cumulatively accounting for 1.62%, as per exchange data.

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The company's shares have regained strength in April, gaining 10.75% so far and recovering much of the 14.6% decline seen in March. In terms of financials, LIC reported a 17.46% year-on-year (YoY) increase in consolidated net profit to ₹12,930.44 crore for the quarter ended 31 December 2025. Net premium income for the quarter rose 17.76% YoY to ₹1.26 lakh crore, up from ₹1.07 lakh crore in Q3FY25.

R Doraiswamy, CEO & MD, LIC, said that the company has been paying dividends consistently since listing in May 2022 and has also increased the dividend per share over time from ₹1.50 per share to ₹12 per share. The proposed bonus issue is a significant step in rewarding shareholders, he added.