LIC Approves First Post-Listing 1:1 Bonus Issue

Life Insurance Corporation of India's board has approved a 1:1 bonus share issue, marking the state-owned insurer's first such action since its 2022 listing. Every shareholder on the record date will receive one additional share for each share held, effectively doubling the share count without a cash outlay. The issue will be funded by capitalizing Rs 6,325 crore from LIC's existing reserves, with completion targeted within two months of board approval and a December 2025 deadline. Bonus issues of this scale signal management confidence in reserve adequacy and typically compress the per-share price while expanding retail accessibility and market liquidity. For LIC, whose majority ownership sits with the Government of India, the move also broadens the float denominator without diluting earnings per share on an absolute basis, though EPS on a per-share basis adjusts downward proportionally. Investors should track the official record date announcement, as positioning ahead of that date determines bonus eligibility.