LIC 1:1 Bonus Share Explained: What 21 Lakh Shareholders Need to Know Before the Record Date

Life Insurance Corporation of India (LIC) has set May 29, 2026, as the record date for its first-ever bonus issue in a 1:1 ratio, making eligible shareholders entitled to receive one fully paid-up equity share of Rs 10 for every share held. The state-run insurer’s board approved the proposal in April and said the bonus shares will be issued by capitalising up to Rs 6,325 crore from reserves and surplus available as of December 31, 2025. LIC’s reserves and surplus stood at nearly Rs 1.5 lakh crore at that time.

A bonus issue is a corporate action in which a company distributes free additional shares from its accumulated reserves. While it increases the number of outstanding shares, it does not change the company’s overall market capitalisation. Such issues are often viewed as a sign of financial strength and may improve stock liquidity and affordability for investors.

To qualify for LIC’s bonus shares, investors must hold the company’s shares in their demat accounts on the record date. Under SEBI’s T+1 settlement system, buyers need to purchase the stock at least one trading day before the record date for the shares to be credited in time. Since May 28, 2026, is a market holiday for Bakrid, May 27, 2026, becomes the last trading day to buy LIC shares and remain eligible for the bonus issue.

This will be LIC’s first bonus issue since its listing and will benefit more than 21 lakh shareholders. Since its stock market debut in May 2022, the company has already declared five interim dividends.

LIC shares have gained about 6% over the past week and nearly 3% in the past month, though the stock remains down more than 2% so far in 2026 and about 3% over the past year. Over a three-year period, however, the shares have risen more than 38%. The insurer currently has a market capitalisation of nearly Rs 5.29 lakh crore and trades at a price-to-earnings ratio of 8.95.

In its latest quarterly results, LIC reported a consolidated net profit of Rs 23,467 crore for the fourth quarter of FY26, up 23% year on year from Rs 19,039 crore in the same period last year. Net premium income increased 12% year on year to Rs 1.65 lakh crore from Rs 1.48 lakh crore. For the full year ended March 31, 2026, LIC’s assets under management rose more than 5% to Rs 57.29 lakh crore, while net profit climbed over 19% year on year to Rs 57,419 crore.