Overview
- LIC’s board approved the company’s first bonus issue since listing on Monday, granting one new share for every one held.
- Subject to shareholder approval, the insurer will issue about 632.49 crore shares, doubling paid-up equity capital to Rs 12,649.99 crore.
- LIC said it expects to credit or dispatch the bonus shares within two months of the board nod, setting June 12, 2026 as the outer date.
- The bonus increases the share count and the price typically falls in step on the ex-bonus date, so investor ownership stays the same while trading tends to get easier.
- Analysts and government sources say a larger, lower-priced float could ease a future offer for sale to lift public holding, and LIC has SEBI leeway until May 16, 2027 to reach 10%.