LIC bonus share issue: Board approves 1:1 equity shares, capitalising Rs 6,325 crore reserves

Life Insurance Corporation of India said its board cleared a 1:1 bonus issue of equity shares. The insurer disclosed the decision in a regulatory filing on Monday, April 13, 2026. LIC said it will issue one new fully paid share for each existing fully paid share held on the record date.

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The filing said the bonus shares will be issued by converting part of LIC’s reserves. LIC will capitalise Rs 6,325 crore from reserves and surplus available as of December 31, 2025. The shares involved are equity shares of Rs 10 each.

LIC bonus issue 1:1 approved by board

LIC described the decision through its board meeting note. "it is to inform that the Board of Directors of the Life Insurance Corporation of India at its meeting held today, i.e., Monday, April 13, 2026... considered and approved the issuance of bonus equity shares in the proportion of 1:1, i.e., 1 One fully paid up equity share of Rs 10 each for every 1 one fully paid-up equity share of Rs 10 each held by the Members of the Corporation as on the Record Date,.. LIC said.

LIC bonus issue and government stake in LIC

The government remains LIC’s main shareholder with a 96.5 per cent stake. It reduced its holding through an initial public offering in May 2022. The IPO was priced in a band of Rs 902-949 a share. That sale involved 3.5 per cent and raised about Rs 21,000 crore.

LIC bonus issue linked to potential LIC OFS plans

Sources said the bonus issue could support a future share sale in LIC. The move is seen as opening space for another offer for sale. The government, according to sources, is preparing plans for an OFS of LIC. No timeline or size for the possible OFS was stated.

In trading, LIC shares ended higher on the BSE after the announcement. The stock closed at Rs 804.25. It rose 0.71 per cent compared with the previous close. The filing did not give the record date for the bonus issue.

With inputs from PTI