The company’s board approved the bonus issue during its meeting on Monday, and it was announced in the post-market hours. Following the announcement, the stock jumped nearly 5% on Wednesday (markets were closed on Tuesday on account of Dr Baba Saheb Ambedkar Jayanti). The stock jumped nearly 2% to its intraday high of Rs 856.35 apiece on Thursday
LIC on Monday said that it will issue one fully paid-up equity share of Rs 10 each for every fully paid-up equity share of Rs 10 each held by eligible shareholders as on the record date. It added that it will issue the bonus shares by capitalising up to Rs 6,325 crore out of its reserves and surplus available as on December 31, 2025, which stood at nearly Rs 1.5 lakh crore. This is, however, subject to approvals.
LIC noted that the bonus shares will be credited within two months from the date of the board’s approval, that is, on or before June 12 this year.
LIC bonus issue’s record date
Only those shareholders who own shares of the company as on the record date will be eligible to receive the bonus shares. The record date for LIC’s bonus issue is yet to be determined.
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A 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 portfolios.While this marks 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.
LIC share price
LIC shares had made a weak market debut back in May 2022, listing at a discount of more than 8% over its IPO price at Rs 872 apiece on NSE. The stock then declined more than 39% to drop to a low of Rs 530.05 apiece in March 2023. However, it then rallied more than 130% from there to hit a high of Rs 1,222 apiece in August 2024. The stock has now declined around 30% since then.
At today’s high, the stock is down nearly 2% from its listing price and around 10% from its 2022 IPO price of Rs 949 apiece.
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