Shares of Life Insurance Corporation of India (LIC) rose nearly 2 percent on Tuesday, closing at ₹854.90 on the National Stock Exchange (NSE). This uptick follows the announcement of LIC’s first-ever bonus share issue since its listing, a move that shareholders will likely welcome.
The state-run insurer declared a bonus share issue at a ratio of 1:1, meaning eligible shareholders will receive one additional fully paid-up equity share for each existing share they hold. Market analysts noted that this initiative is expected to enhance liquidity in the stock and make it more accessible to retail investors.
LIC will finance the bonus share issuance by capitalizing ₹6,325 crore from its accumulated reserves. While the number of shares in investors’ portfolios will double following the issuance, the total value of their holdings is expected to remain unchanged immediately after the ex-bonus adjustment, as the share price will adjust accordingly.
The record date for determining eligibility for the bonus shares is set for May 29, 2026. Investors must hold LIC shares in their Demat accounts on or before this date to qualify. Due to the T+1 settlement cycle, investors will need to acquire shares at least one trading day prior to the record date to ensure timely credit of the bonus shares.
This bonus issue represents LIC’s first corporate action since its stock market debut, highlighting the insurer’s strong reserves and reflecting management’s confidence in the company’s long-term prospects. The decision to capitalize a modest portion of its reserves has garnered positive attention from analysts.
In financial performance, LIC reported a 23 percent year-on-year increase in net profit for the quarter ended March 31, 2026, reaching ₹23,467 crore. This growth has been attributed to strong annualized premium equivalent growth and improved value of new business margins. Analysts believe that this robust performance, combined with the announcement of the bonus issue, has fueled buying interest in the stock in recent trading days.
Published on May 26, 2026.
