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Life Insurance Corporation of India (LIC) has approved a 1:1 bonus share issue, offering one additional share for every existing share held. The move will be funded by capitalising INR 6,325 crore from reserves and is aimed at improving stock liquidity and increasing investor participation. The development also comes as the government, which holds a 96.5% stake, looks at potential future stake sales under its disinvestment plans. LIC, which went public in 2022, continues to focus on strengthening its market presence through capital restructuring and enhanced accessibility for investors.
Life Insurance Corporation of India (LIC) has approved a bonus issue of equity shares in a 1:1 ratio, the company said in a regulatory filing on Monday. Advertisement
Under the proposal, shareholders will receive one fully paid-up equity share of face value INR 10 for every one existing share held, as on the record date to be announced. The bonus issue will be carried out by capitalising INR 6,325 crore from the corporation's reserves and surplus as of December 31, 2025.
The move is expected to enhance liquidity in the stock and broaden investor participation. It may also facilitate further stake sale by the government through an offer for sale (OFS), according to sources.
The government currently holds a 96.5 per cent stake in LIC. It had earlier divested 3.5 per cent through an initial public offering (IPO) in May 2022, raising around INR 21,000 crore. The IPO was priced in the range of INR 902 to INR 949 per share.
Market participants are anticipating additional share sales as part of the government's broader disinvestment strategy.
LIC shares closed at INR 804.25 on the BSE on Monday, up 0.71 per cent from the previous session.
The bonus issue marks a key capital restructuring step for the insurer as it looks to improve market participation and support future capital market transactions.
Source: PTI
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