LIC Approves 1:1 Bonus Share Issue, Paving Way for Future Sales

Life Insurance Corporation (LIC) announced a 1:1 bonus issuance of equity shares, capitalizing over Rs 6,325 crore. Currently holding a 96.5% stake, the Indian government plans for a future sale of LIC shares following the initial public offering in 2022. LIC shares rose 0.71% on Monday.

The Life Insurance Corporation of India (LIC) has announced a significant move, as its board approves a bonus issuance of equity shares in a 1:1 ratio. In its regulatory filing on Monday, LIC detailed that the bonus issue requires an allocation of Rs 6,325 crore from its reserves and surplus as of December 31, 2025.

Aiming to enhance its financial strategy, LIC reported that the Board of Directors made this pivotal decision during a meeting, further mentioning that each fully paid-up equity share would be allotted with an additional share of the same value. This move strategically sets the stage for an offer for sale (OFS) in the future.

The government, holding a 96.5% stake in LIC but previously selling a 3.5% stake via an IPO in May 2022, is allegedly preparing plans for a subsequent OFS. The announcement impacted the stock's performance positively, with LIC shares closing at Rs 804.25, marking a 0.71% increase on the BSE.

(With inputs from agencies.)