LIC Announces 1:1 Bonus Issue: Key Details on the First Bonus Since Listing

LIC has announced the 1:1 bonus issue, the first ever since the listing. It is important for the stakeholders to address this announcement. In this article we will discuss the bonus issue and what gain stakeholders can have through this one.

Shareholder approval is required for the LIC board’s endorsement of a 1:1 bonus share issue. The action, which is intended to benefit its 2.90 million retail shareholders, will greatly boost paid up equity capital while preserving financial metrics, according to media reports.

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Shareholders would receive one free share for each share they held as of an unannounced record date. The shares are anticipated to be credited by June 12, 2026, utilizing Rs. 6,325 crore from reserves, as per the reports. The firm plans to sell 632.49 crore equity shares with a face value of Rs. 10 each.

The Board determined that the recommended issuance of bonus shares at the ratio of 1:1 is a fitting method to thank shareholders for their ongoing support and faith in LIC. In its regulatory statement, the firm stated that it also helps to strike a balance between paid up capital and accumulated reserves, while increasing liquidity and marketability by making the shares more affordable and appealing to a wider variety of investors, as highlighted above.