LIC Stock Jumps Over 3% In Intraday On 1:1 Bonus Announcement

Shares of Life Insurance Corporation of India (LIC) rose as much as 3.5% in early trade on Wednesday after the state-run insurer approved a 1:1 bonus share issue, its first since listing. At 12:25 pm, LIC shares were trading at ₹833.55, up 3.72% on the National Stock Exchange (NSE).

The buying interest followed the company’s announcement that its board has cleared the issuance of bonus equity shares by capitalising ₹6,325 crore from reserves. LIC disclosed the decision after market hours on Monday.

Why Does The Move Matter Now?

The bonus issue comes at a time when LIC’s stock has seen modest gains and relatively limited retail participation. LIC shares have risen about 6% over the past year. In comparison, the Nifty 50 has gained roughly 4% during the same period. The increase in share count is expected to improve liquidity and make the stock more affordable after the price adjustment.

The move also holds relevance for the government’s stake in the insurer. The Centre currently owns 96.5% of LIC and is required to pare its holding to meet minimum public shareholding norms. A larger equity base could support future stake sales, including through an offer for sale (OFS).

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Dividend Track Record

Also, LIC has kept its dividend payouts consistent since listing. In May 2025, it declared a final dividend of ₹12 per share. This was double the ₹6 per share announced a year earlier. It had also paid an interim dividend of ₹4 per share in February 2024.

Earlier, the insurer had announced a final dividend of ₹3 per share in 2023. This came after a payout of ₹1.5 per share in 2022, the year it got listed.

Sources:

Moneycontrol

The Hindu