State-owned insurer Life Insurance Corporation of India has approved its first-ever bonus share issue, marking a notable corporate action for shareholders. The company’s board has authorised the allotment of fully paid-up bonus equity shares worth ₹6,352 crore.
The bonus shares will be issued in a 1:1 ratio. This means shareholders will receive one additional equity share for every one share they currently hold. Each share carries a face value of ₹10. With this issuance, LIC’s paid-up share capital will double. The number of shares will increase from 632 crore to 1,264 crore shares. Post-issue, the total paid-up capital is expected to rise to approximately ₹12,649 crore.
The company has indicated that the bonus shares will be allotted within two months from the date of board approval. The expected completion timeline is on or before June 12, 2026. The proposal remains subject to shareholder approval and will be carried out in line with applicable regulatory provisions.
For the third quarter ended December 2025 (Q3FY26), LIC reported a net profit of ₹12,958 crore, reflecting a 17% increase compared to ₹11,056 crore in the same period last year.
Net premium income for the quarter rose to ₹1,25,613 crore from ₹1,06,891 crore year-on-year. Total income also increased to ₹2,33,984 crore, up from ₹2,01,994 crore in the corresponding period.
Share Price Movement
As of today, shares of Life Insurance Corporation of India rose sharply following the announcement. The stock gained up to 5% during the session, touching an intraday high of ₹845 on the BSE, after the bonus issue, marking a significant corporate action for its nearly 22 lakh shareholders.
Source: News
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