Bonus Issue
LIC Allots 632.50 Crore Bonus Shares in 1:1 Ratio; Paid-up Capital Doubles
NSE
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BSE
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Life Insurance Corporation of India (LIC) has allotted 632,49,97,701 fully paid-up bonus equity shares in a 1:1 ratio to eligible shareholders. Following the allotment, the corporation’s paid-up equity share capital has doubled to ₹12,649.99 crore, comprising 1,264,99,95,402 equity shares.
PRICE-SENSITIVE TRIGGER
Event: Allotment of Bonus Equity Shares
Type: Bonus Issue / Corporate Action
Impact: Positive
Immediate Effect: Eligible shareholders have received one bonus share for every existing fully paid-up equity share held on the record date. The total number of outstanding shares has doubled while the paid-up share capital has increased proportionately.
Key Metrics:
- Bonus Issue Ratio: 1:1
- Bonus Shares Allotted: 632,49,97,701 shares
- Face Value per Share: ₹10
- Record Date: May 29, 2026
- Post-Issue Paid-up Capital: ₹12,649.99 crore
- Post-Issue Equity Shares Outstanding: 1,264,99,95,402 shares
- Pre-Issue Equity Shares Outstanding: 632,49,97,701 shares
Highlight:
- LIC has doubled its equity share base through a 1:1 bonus issue, increasing outstanding shares from 632.50 crore to 1,264.99 crore shares.
What Happened ?
The Stakeholders’ Relationship Committee of LIC approved and allotted 632,49,97,701 fully paid-up bonus equity shares on June 1, 2026.
The allotment was made in the ratio of 1:1, meaning shareholders received one new fully paid-up equity share of ₹10 face value for every existing fully paid-up equity share held as of the record date, May 29, 2026.
Following the allotment, the corporation’s paid-up share capital doubled, reflecting the increased number of equity shares in circulation.
Key Details
Bonus Share Allotment and Capital Structure Revision:
- LIC allotted 632.50 crore bonus shares to eligible shareholders.
- Bonus shares were issued in the ratio of 1:1.
- Shareholders holding shares as of May 29, 2026 received the bonus entitlement.
- Each bonus share carries a face value of ₹10.
- Paid-up equity capital increased to ₹12,649.99 crore.
- Total equity shares outstanding increased to 1,264.99 crore shares.
- Bonus issue was approved and executed through the Stakeholders’ Relationship Committee.
- The allotment follows earlier corporate announcements made in April and May 2026.
Note:
- A bonus issue does not change the intrinsic value of shareholders’ holdings immediately but increases the number of shares held, improving stock liquidity and retail participation potential.
Risk Analysis
Summary:
- The bonus issue does not impact LIC’s underlying business operations, profitability, cash flows, or embedded value. The event is primarily a capital restructuring exercise.
Key Risks:
- Earnings per share (EPS) will adjust downward due to the higher share count.
- Short-term market volatility may occur as the stock adjusts to the bonus issue.
- The bonus issue itself does not create additional shareholder value unless supported by future earnings growth.
- Investors should focus on operational performance rather than the increased number of shares.
Worst Case Scenario:
- If investors interpret the bonus issue as a substitute for business growth, valuation expectations may become disconnected from operating fundamentals, resulting in future price corrections.
Risk Level: Low
Company Commentary
- LIC confirmed allotment of 632,49,97,701 fully paid-up bonus equity shares.
- Bonus shares were issued in the proportion of one equity share for every existing equity share held.
- Shareholders appearing in the Register of Members and beneficial owners as on May 29, 2026 were eligible.
- Following the allotment, the corporation’s paid-up share capital increased to ₹12,649.99 crore.
- The allotment process was completed through the Stakeholders’ Relationship Committee meeting held on June 1, 2026.
Official Exchange Filing: Life Insurance Corporation of India