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 liquidity and make shares more affordable for retail investors, potentially broadening investor participation.
Eligibility for receiving bonus shares depends on holding the stock as of the record date, which LIC has not yet announced.
A First for LIC Since Market Debut
If approved, this would mark LIC’s first bonus issue since its listing in May 2022. So far, the insurer has declared five interim dividends, reflecting a consistent approach to shareholder returns.LIC Share Price and Market Performance
LIC currently commands a market capitalisation of over Rs 5 lakh crore. The stock has gained approximately 46 percent over the past three years, though it has declined around 6 percent so far in 2026. Shares of LIC closed at Rs 798 on Friday.The government continues to hold a dominant 96.5 percent stake in the company, with the remaining 3.5 percent owned by public shareholders.
LIC Financial Performance
In its December quarter results, LIC reported a 17 percent year-on-year rise in consolidated net profit to Rs 12,930 crore, compared to Rs 11,008 crore in the same period last year. Net premium income for Q3FY26 stood at Rs 1.26 lakh crore, also up 17 percent from Rs 1.07 lakh crore reported a year earlier.The insurer is yet to announce the release date for its January to March quarter results for FY26.
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