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LIC shares up almost 5% today: Here we decode why
15 Apr 2026

Shares of the Life Insurance Corporation of India (LIC) surged nearly 5% today to ₹835.55 apiece after the company announced its first-ever bonus issue.

The move, which is subject to necessary approvals, will see one additional fully paid-up equity share of ₹10 each, issued for every existing fully paid-up equity share held by the shareholders.

Bonus shares expected to be credited by June 12
Financial strategy

The LIC board approved the bonus issue at its recent meeting. The company plans to capitalize up to ₹6,325 crore from its reserves and surplus for this corporate action.

This amount is part of a larger reserve of around ₹1.5 lakh crore as of December 31, 2025.

The bonus shares are expected to be credited within two months of board approval, on or before June 12, 2026.

What are bonus shares?
Corporate milestone

This bonus issue marks LIC's first such corporate action since its listing in May 2022.

The company has declared five interim dividends so far.

A bonus issue is a way of issuing extra shares to existing shareholders free of cost from a company's reserves.

While it increases the number of shares outstanding, it doesn't change the overall market capitalization but can improve liquidity and accessibility for investors.

LIC's financial performance and stock movement
Market reaction

In its latest earnings report, LIC posted 17% YoY rise in consolidated net profit to ₹12,930 crore for the December quarter. Net premium income also grew by 17% to ₹1.26 lakh crore during the same period. LIC shares have gained nearly 47% over three years.