LIC board approves 1:1 bonus issuance

New Delhi: Life Insurance Corporation (LIC) on Monday said its board has approved a bonus issuance of equity shares in 1:1 ratio.

In a regulatory filing, the bonus issue will be done by capitalising Rs 6,325 crore out of reserves and surplus available with LIC as of December 31, 2025.

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"... it is to inform that the Board of Directors of the Life Insurance Corporation of India at its meeting held today, i.e., Monday, April 13, 2026... considered and approved the issuance of bonus equity shares in the proportion of 1:1, i.e., 1 (One) fully paid up equity share of Rs 10 each for every 1 (one) fully paid-up equity share of Rs 10 each held by the Members of the Corporation as on the Record Date,.." LIC said.

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The Government currently holds 96.5 per cent stake in LIC. It sold 3.5 per cent through an initial public offering (IPO) in May 2022 at a price band of Rs 902-949 a share. The share sale fetched the government around Rs 21,000 crore.

The bonus issue would pave way for further share sale or offer for sale (OFS) of LIC. The government, according to sources, is working on plans to come out with an OFS of LIC.

Shares of LIC closed at Rs 804.25, up 0.71 per cent over previous close on the BSE.

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