LIC Bonus Issue 2026: First-Ever Bonus Shares on Cards, Board Meet Scheduled; Stock Jumps 6.95%

Big News From investors, Life Insurance Corporation of India is considering its first-ever bonus share issue, with the board scheduled to meet on April 13 to evaluate the proposal. The LIC bonus issue, if approved, could be a major milestone in LIC's capital market journey.

According to an exchange filing dated April 7, LIC said its board will deliberate on issuing bonus shares to existing shareholders, a step the insurer has never taken before. While LIC has historically rewarded investors through dividends, a bonus issue would be a first.

The upcoming LIC board meeting on April 13 will be important as it will determine whether the company formally recommends the bonus issue. However, even if the board approves the proposal, the process does not end there. LIC will still require shareholder approval.

LIC Share Price Today: Stock Surges Nearly 7%

The news of a potential LIC bonus share issue triggered strong buying interest in the stock. LIC share price today ended at Rs. 794.85 gaining 6.95%. The stock recovered today after touching 52-weeks low in the past week. Although it is important to note that LIC shares have remained under pressure for much of 2026 so far.

Trading Window Update

LIC also stated that its trading window is currently closed for dealing in equity shares. This restriction will remain in place until 48 hours after the announcement of financial results for the quarter and year ended March 31, 2026.

Purpose of The Bonus Issue:

With the bonus share issue, the company will distribute additional shares to existing shareholders free of cost, based on their current holdings. It won't bring fresh capital into the company but It will increase the total number of outstanding shares and improve liquidity in the stock. However, the overall market value of the company remains unchanged despite the bonus issue.

LIC market capitalization as of today stand at Rs 5.02 lac crore.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.