The share price of Life Insurance Corporation of India (LIC) is likely to remain in focus after shareholders approved the company’s proposed 1:1 bonus share issue.
The resolution received overwhelming shareholder support, with nearly 99.9998% votes cast in favour of the proposal.
LIC Approves 1:1 Bonus Share Issue
Under the approved proposal:
- Shareholders will receive 1 bonus equity share for every 1 existing fully paid-up equity share held
- LIC will capitalise approximately:
₹6,324.99 crore
from its reserves and surplus account for the issuance.
Eligible shareholders whose names appear in the Register of Members or beneficial ownership records on the yet-to-be-announced record date will qualify for the bonus allotment.
What Does a Bonus Share Issue Mean?
A bonus issue increases the number of outstanding shares by distributing additional shares to existing shareholders without any extra cost.
For example:
- If an investor owns 100 LIC shares before the record date,
- They would receive 100 additional bonus shares after the allotment.
While the total investment value theoretically remains unchanged immediately after the bonus adjustment, bonus issues often improve stock liquidity and retail participation.
Regulatory Approvals and Compliance
LIC stated that the issuance complies with:
- The Securities and Exchange Board of India (SEBI) regulations
- The Companies Act, 2013
- The Life Insurance Corporation Act, 1956
- FEMA regulations for foreign shareholders
The bonus shares will be listed on stock exchanges where LIC shares are currently traded.
Demat Credit Process
The company said:
- Shares held in demat form will receive bonus shares directly into investor accounts
- Physical shareholders’ bonus shares will temporarily move to a Suspense Escrow Demat Account until documentation formalities are completed
Foreign investors and non-resident shareholders may require approval from the Reserve Bank of India under FEMA provisions.
LIC Share Price Performance
As of May 19, 2026, at 10:06 AM:
- LIC share price on NSE was trading at:
₹799.30
- Up approximately:
1.00%
from the previous closing level.
Conclusion
LIC’s approval of a 1:1 bonus issue marks a major corporate action for the insurance giant. The move is expected to improve share liquidity and strengthen retail investor participation while reflecting the company’s strong reserve position. Investors are likely to closely monitor the announcement of the official record date and subsequent bonus allotment timeline.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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