Summary of this article
LIC's board to consider bonus issue on April 13 meeting
This will be its first-ever bonus share issue
LIC had earlier declared dividend payouts five times since getting listed on exchanges
LIC Bonus Shares: Shares of Life Insurance Corporation of India (LIC) jumped on April 8 after the country's largest insurer announced that its board of directors will conduct a meeting on April 13 to announce its first ever bonus share issue, sparking optimism among long-waiting shareholders.
“A meeting of the Board of Directors of the Life Insurance Corporation of India (“the Corporation”) is scheduled to be held on Monday, April 13, 2026 to inter-alia consider and recommend a proposal for issue of Bonus shares,” LIC said in an exchange filing on April 7.
It is, however, subject to shareholder approval and will be carried out in line with applicable regulations.
The state-run insurer’s shares climbed 6.79 per cent to Rs 793.70 apiece on the National Stock Exchange (NSE) today. During the session, the shares touched an intraday high of Rs 803.60 apiece. From its 52-week high of Rs 980, the insurance stock is down 19 per cent.
What Are Bonus Shares And What You Need To Know
Bonus shares are usually issued from a company’s accumulated profits or free reserves, not from any fresh cash coming in. Despite the name, bonus shares do not actually increase the value of your investment. They simply increase the number of shares you own, while the stock price adjusts accordingly.
Companies issue bonus shares to signal confidence in their business and future growth. It shows that the management is comfortable with its financial position.
Another reason is that it brings down the stock price, making it more affordable for retail investors. This can attract more participation and improve trading volumes.
There’s also a psychological angle. Investors feel good when they receive extra shares, even though their overall wealth does not change. Bonus issues often create positive buzz in the market, which boosts sentiment. For expensive stocks like LIC, a bonus can make the shares look more accessible to smaller investors.
LIC Dividend History
LIC does not have a long track record of rewarding shareholders. Since its stock market debut on May 17, 2022, the insurer has announced five dividend payouts. It first declared a dividend of Rs 1.50 per share with an ex-date of August 25, followed by Rs 3 with an ex-date of July 21, Rs 4 with an ex-date of February 21, and Rs 6 with an ex-date of July 19.
At its current share price, LIC’s dividend yield comes in at at 1.51 per cent. Dividend yield shows the yearly return generated through dividends in proportion to the stock’s price.
