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In a significant improvement to the investors, the Life Insurance Corporation of India (LIC) has declared the first bonus issue ever to be carried out in a 1:1 ratio. On April 13, 2026, the proposal was passed by the Board of Directors and entitled eligible shareholders to receive 1 fully paid-up share of 100 units of stock as equity as of the record date, to be subsequently announced.

Increase in paid-up equity capital This maiden bonus issue will enable an increase in the paid-up equity capital of LIC, which is about 6,325 crore to 12,650 crore, by capitalizing an equivalent of the reserves and surplus. The company also has close to 22 lakh shareholders who will gain since the shares will be doubled without any extra expense, although the price of the shares is likely to correct accordingly after the bonus.

Bonus shares will be dematured and credited to demat accounts on or before June 12, 2026, with required approvals of shareholders and regulators. It is perceived as a good sign of the financial soundness of LIC and a payoff to long-term investors, who have waited since its 2022 IPO. A bonus after the stock would lead to better liquidity and wider involvement in the stock by the retailers, predict market watchers.