If declared, this will mark the first bonus issue announced by the PSU company. LIC has so far announced five interim dividends since its debut on the stock markets in May 2022.
Bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio.
Only those shareholders who own the shares of the company as on the record date will be eligible to receive the bonus shares. The record date for LIC’s prospective bonus issue is yet to be determined.
LIC share price
LIC currently has a market capitalisation of more than Rs 5 lakh crore. The shares of the company have jumped 46% in three years, although they are down around 6% in 2026 so far. Notably, the government holds 96.5% stake in the company, while only 3.5% is held by the public.
The shares of the insurance behemoth were trading at around Rs 803 apiece on Wednesday morning. Today’s sharp rise in LIC’s share price also comes amid broader optimism in the stock markets. Sensex and Nifty jumped around 4% each on Tuesday morning after Iran and US announced a temporary ceasefire and reopening of the Strait of Hormuz.
LIC earnings snapshot
LIC in February reported a 17% YoY rise in its December quarter consolidated net profit at Rs 12,930 crore compared to Rs 11,008 crore reported in the year-ago period. The company’s net premium income stood at Rs 1.26 lakh crore in Q3FY26, up 17% over Rs 1.07 lakh crore posted in the corresponding period of the last financial year.
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The PSU is yet to announce when it will release its results for the January-March quarter of FY26.
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