Shares of Life Insurance Corporation of India (LIC) have rallied around 7% in just two sessions after the insurance behemoth announced its first-ever bonus issue of shares in the ratio of 1:1 to reward its 22 lakh shareholders. LIC 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. The company will capitalise 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, subject to approvals.
The bonus shares will be credited within two months from the date of the board’s approval, on or before June 12 this year. While this marks the first bonus issue announced by the PSU company, LIC has announced five interim dividends since its debut on the stock markets in May 2022. 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.
