Life Insurance Corporation of India (LIC) is likely to announce its first-ever bonus share issue, with its board scheduled to meet on April 13, 2026, to review the proposal. This could be a key milestone for the insurer since it was listed on the stock market.
In an official update, LIC said its board of directors will discuss the possibility of issuing bonus shares to existing shareholders. If the plan is approved, it will still need shareholder approval before it is implemented.
A bonus share issue means investors receive additional shares at no extra cost, based on how many shares they already own. While this increases the number of shares held, the overall value of the investment stays the same, as the share price adjusts accordingly.
This would be the first time LIC is offering bonus shares. Until now, the company has mainly rewarded its investors through dividends. Market experts believe a bonus issue could help improve trading activity in the stock and make it more attractive to retail investors.
The news has already lifted investor sentiment. LIC’s share price saw a noticeable rise after reports of the possible bonus issue, reflecting optimism in the market.
The company has also temporarily closed its trading window, following standard rules, until a couple of days after it announces its financial results for the year ending March 2026.
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