Life Insurance Corporation of IndiaLICI₹834.90 +3.89%

Shares of the Life Insurance Corporation of India (LIC) gained more than 4% during early trades on Wednesday to touch an intraday high of ₹837.75 apiece, after the state-owned insurance giant announced a 1:1 bonus issue.

Under the proposed plan, shareholders will receive one fully paid-up equity share of ₹10 for every one share they currently hold as of the record date, which will be announced at a later time. Such bonus shares are expected to get credited on or before June 12, 2026.

“Since listing in May 2022, LIC has been paying dividends consistently and also increasing the dividend per share over a period of time from Rs. 1.50 per share to Rs. 12/- per share. We have been continuously evaluating various mechanisms for rewarding our shareholders and we believe this proposed bonus issue is a significant step taken by us in that direction,” said Shri R Doraiswamy, CEO & MD, LIC

The company clarified that this bonus issue will not impact its solvency margin or any other critical financial parameters.

LIC’s CRISP Analysis:

Life Insurance Corporation of IndiaLICI₹834.50 +3.84%