Daijiworld Media Network – Mumbai

Mumbai, Apr 14: State-run insurance major Life Insurance Corporation of India has announced its maiden 1:1 bonus issue, a move that will benefit around 22 lakh shareholders. The decision was approved by the company’s board at its meeting on Monday.

As per the announcement, the company will issue one fully paid-up equity share of Rs 10 for every existing fully paid-up equity share of Rs 10 held by shareholders, as on a record date that will be announced later. LIC said it will capitalise up to Rs 6,325 crore from its reserves and surplus, which stood at nearly Rs 1.5 lakh crore as of December 31, 2025, subject to necessary approvals.

The company added that the bonus shares will be credited within two months from the date of board approval, on or before June 12. A bonus issue involves distribution of free shares from a company’s reserves and is generally seen as a sign of strong financial position and future growth prospects. While it increases the number of shares, it does not change the company’s overall market capitalisation, though it may improve liquidity in the stock.

For the December quarter, LIC reported a 17% year-on-year rise in consolidated net profit to Rs 12,930 crore, compared to Rs 11,008 crore in the same period last year. Net premium income also rose 17% to Rs 1.26 lakh crore.

LIC shares have gained about 5% over the past month but are down over 5% since the start of the year, while the stock has delivered nearly 47% returns over the past three years.