Shares of Life Insurance Corporation of India rose nearly 4% in Tuesday’s session after the state-run insurer announced a 1:1 bonus share issue, a move aimed at rewarding shareholders and improving stock liquidity. The stock was trading at Rs 834.40, up Rs 30.75 during the session, reflecting positive investor sentiment following the announcement.
The board of LIC has approved the issuance of bonus equity shares in the ratio of 1:1, meaning shareholders will receive one additional fully paid-up equity share of Rs 10 each for every existing share held. The move will result in the company’s paid-up equity share capital increasing to Rs 12,649.99 crore from Rs 6,324.99 crore, following capitalisation of reserves.
The bonus shares will be issued by capitalising nearly Rs 6,325 crore from the company’s reserves and surplus as of December 31, 2025, subject to shareholder approval. The record date for determining eligible shareholders will be announced at a later stage.
Commenting on the development, CEO and Managing Director R Doraiswamy said the company has been consistently rewarding shareholders since its listing in May 2022 through dividends, with payouts rising from Rs 1.50 to Rs 12 per share over time. He added that the bonus issue represents another step in enhancing shareholder value.
From a trading perspective, LIC shares moved in the range of Rs 824.60 to Rs 837.75 during the session, compared to the previous close of Rs 803.65. The company commands a market capitalisation of around Rs 5.28 lakh crore, with a price to earnings ratio of 9.95 and a dividend yield of 1.44%.
The announcement comes at a time when Indian markets remain volatile due to global macro uncertainties, including elevated crude oil prices and geopolitical tensions. However, domestic institutional participation and steady policy support continue to provide stability to large cap financial stocks like LIC.
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