Life Insurance Corporation of India (LIC) is expected to announce its first-ever bonus issue of shares following its board meeting scheduled for Monday, April 13. The move comes after the state-run insurer confirmed last week that its board would consider and recommend a bonus share issuance.What LIC’s Bonus Issue Means for Investors
A bonus issue involves distributing additional shares to existing shareholders at no extra cost, typically from a company’s reserves. This step is often interpreted as a signal of strong financial performance and confidence in future growth.While a bonus issue increases the total number of outstanding shares, it does not impact the company’s overall market capitalisation. However, it can enhance stock...