Shares of settled nearly 2 per cent higher on Tuesday. The state-run insurer recently announced its first-ever bonus share issue since listing on the stock exchanges. The stock closed at ₹854.90 on the NSE in today’s trading session.
Investor sentiment improved after the 1:1 bonus share issue, under which shareholders will receive one additional fully paid-up equity share for every existing share held. Market participants said the move is likely to improve liquidity in the counter and make the stock more affordable for retail investors.
What does LIC’s 1:1 bonus issue mean for shareholders?
Under the approved bonus ratio, eligible shareholders will receive one free share for each existing LIC share held. The issue will be financed by capitalising ₹6,325 crore from the insurer’s accumulated reserves.
While the number of shares in investors’ portfolios will double after the allotment, the total value of holdings is expected to remain unchanged immediately after the ex-bonus adjustment, as the share price will adjust proportionately.
When is LIC’s bonus share record date and who is eligible?
LIC has fixed May 29, 2026, as the record date for determining shareholder eligibility for the bonus shares.
Investors must hold LIC shares in their Demat accounts as of the record date to qualify. Considering the T+1 settlement cycle, investors will need to purchase the shares at least one trading day before the record date for the shares to be credited in time.
The bonus issue marks LIC’s first such corporate action since its stock market debut. Analysts said the move reflects the insurer’s strong reserves position and signals management confidence in the company’s long-term outlook.
The company is capitalising only a small portion of its reserves and surplus.
How did LIC perform in Q4FY26?
for the quarter ended March 31, 2026. The growth was supported by robust annualised premium equivalent growth and higher value of new business margins.
Analysts said the healthy earnings performance, along with the bonus issue announcement, supported buying interest in recent trading sessions.