LIC share price gains 5% after board approves 1:1 bonus issue; up over 15% in April

Life Insurance Corporation (LIC) saw its shares spike 5% in Wednesday's intraday deals, reaching a five-week high of ₹841.30 apiece after the company approved a 1:1 bonus issue. Today’s rally also marked the third straight day of gains for the stock, taking its gains to 6% over the period, based on today’s high.

The company’s board, at its meeting on Monday, approved the issuance of bonus equity shares in the proportion of 1:1, subject to shareholder approval. This marks the company’s first bonus issue since its listing in May 2022.

Although the company has been rewarding shareholders by consistently paying dividends—raising them from ₹1.50 per share to ₹12 per share over time—the bonus issue represents another major corporate action aimed at further rewarding shareholders.

The company had 20.90 lakh retail shareholders at the end of the December quarter (Q3FY26), cumulatively accounting for 1.62%, as per exchange data.

LIC bonus issue details

The bonus shares are expected to be credited or dispatched within two months from the date of board approval, on or before June 12, 2026. The company proposes to issue 632.49 crore equity shares with a face value of ₹10 each, amounting to not more than ₹6,324.99 crore from its reserves and surplus.

LIC’s reserves and surplus stood at ₹1,46,440.58 crore as of December 31, 2025, while profit after tax for the nine-month period ended December 31, 2025, stood at ₹33,998 crore. Post the proposed bonus issuance, the company’s paid-up equity share capital is likely to increase to ₹12,649.99 crore from the current ₹6,324.99 crore, as per the company’s Monday filing.

Further, the company clarified that the proposed issuance of bonus shares will not impact the solvency margin or any other financial parameters of LIC.

R Doraiswamy, CEO & MD, LIC, said, “We are thankful to our shareholders for their support, patience, and belief in our strategy and execution. We are confident that our transformation initiatives are leading to tangible results and will continue to deliver better outcomes for all.”

LIC share price trend

The company’s shares have regained strength in April, gaining 15.6% so far and recovering all of the 14.6% losses recorded in March. To be precise, the stock has been struggling to gain traction since July 2025 and has so far declined 13.6%.

The prolonged decline has also led the stock to fall 31.26% from its recent peak of ₹1,222, attained in August 2024.

In terms of financials, LIC reported a 17.46% year-on-year (YoY) increase in consolidated net profit to ₹12,930.44 crore for the quarter ended December 31, 2025. Net premium income for the quarter rose 17.76% YoY to ₹1.26 lakh crore, up from ₹1.07 lakh crore in Q3FY25.

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