LIC: For the first time in its history, LIC is set to issue free bonus shares—one free share for every one held..
The Life Insurance Corporation of India (LIC) has approved the issuance of bonus equity shares worth ₹6,352 crore. This marks the first-ever bonus issue declared in the history of LIC, the country's largest insurance company. Here, we provide you with detailed information regarding every key aspect of this major decision and the company's recent financial results.
**What is this 1:1 Bonus Share, and How Will Investors Benefit?**
These shares have a face value of ₹10 each and are being issued in a 1:1 ratio. Simply put, shareholders will receive one new bonus equity share for every single existing share they currently hold. This move will effectively double the company's paid-up share capital.
**When Will the Bonus Shares Be Credited to Accounts?**
The company is set to complete the bonus share issuance within two months from the date of approval—that is, on or before June 12. However, this proposal remains subject to the approval of the Corporation's shareholders and will be executed in strict compliance with all applicable statutory provisions.
**What Will LIC's Share Capital Amount Be After the Bonus Issue?**
Following this significant move, LIC's paid-up share capital will increase from 632 crore shares to 1,264 crore shares. Consequently, the monetary value of the company's capital will rise to approximately ₹12,649 crore after the bonus issue.
**How Were LIC's Third-Quarter (Q3FY26) Results?**
This state-owned life insurance company delivered a stellar financial performance during the third quarter, which ended in December 2025. The company recorded a 17% surge in its net profit, reaching ₹12,958 crore. In the corresponding period a year earlier, the company had posted a profit of ₹11,056 crore.
During this quarter, the company's net premium income rose to ₹1,25,613 crore, up from ₹1,06,891 crore in the same period of the previous year. In the latest December quarter, total income also improved to ₹2,33,984 crore, compared to ₹2,01,994 crore in the corresponding period a year earlier.
How did LIC's stock perform in the share market?
On Monday, LIC shares closed at ₹798.35 per share on the National Stock Exchange (NSE), recording a gain of 0.66%. This rise occurred even as the Nifty index registered a decline of 0.86% during the same period. However, from a long-term perspective, the stock has witnessed a decline of 5.09% year-to-date (YTD) and 4.23% over the past 12 months.
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