Life Insurance Corporation of India (NSE:LICI) has approved the issuance of bonus equity shares in the ratio of 1:1, under which shareholders will receive one additional equity share for every share held. The proposal remains subject to approval by shareholders, and the record date for determining eligibility will be announced subsequently.
Capital Structure Impact
The company’s authorised equity share capital stands at Rs. 25,000 crores, while the current paid-up equity share capital is Rs. 6,324.99 crores. Following the proposed bonus issue, the paid-up capital is expected to increase to Rs. 12,649.99 crores. As of December 31, 2025, reserves and surplus were reported at Rs. 1,46,440.58 crores, while profit after tax for the nine-month period stood at Rs. 33,998 crores, forming the base for the bonus issuance.
Purpose of the Bonus Issue
The board indicated that the bonus issue is intended to align the company’s paid-up capital with its accumulated reserves. The move is also expected to enhance liquidity in the stock and make it more accessible to a wider set of investors by reducing the effective per-share price. The company has clarified that the issuance will not impact solvency margins or other financial parameters.
Stock Performance Overview
The stock has delivered mixed performance across different timeframes, reflecting varying market conditions. Over the past one week, the stock has gained 8.85%, while the one-month return stands at 4.70%. On a year-to-date basis, it has declined by 5.14%, whereas the one-year return is 4.92%. Over a three-year period, the stock has generated returns of 46.84%. The 52-week high is Rs. 980.00 and the 52-week low is Rs. 721.50.
Technical Summary
Life Insurance Corporation of India (LIC) closed at ₹803.65 on April 13, 2026, gaining approximately 0.66%, indicating mild recovery momentum. The stock remains slightly below its 50-day SMA of ₹818.56, suggesting a stabilisation phase. Technically, support is placed at ₹720–₹745, while resistance is seen near ₹820–₹850; a sustained breakout above resistance could drive the stock toward the ₹900 level.
Summary
LIC has announced a 1:1 bonus share issue, subject to shareholder approval, with the record date yet to be declared. The move will double the paid-up equity capital while maintaining existing financial metrics. It is aimed at improving liquidity and accessibility of the stock. Market performance remains mixed, and future movement will depend on broader conditions and investor participation.
FAQs
- What does LIC’s 1:1 bonus issue mean for shareholders?
It means shareholders will receive one additional share for every share held, increasing total holdings without any additional investment requirement. - Will the bonus issue affect LIC’s financial position?
The company has clarified that solvency margins and other key financial parameters will remain unchanged after the bonus share issuance. - When will investors become eligible for the bonus shares?
Investors will be eligible based on the record date, which will be announced after shareholder approval of the bonus issue.