LIC bonus shares: Ratio revealed; record date awaited | Impact on face value, shareholding

LIC bonus shares news: Insurance major Life Insurance Corporation of India (LIC) has announced its maiden bonus issue for its shareholders. The company informed us about the same after market hours. However, the record date for the issue of bonus shares is yet to be announced by the company.

"The board of directors in their meeting held today inter alia considered and approved the issuance of bonus equity shares in the proportion of 1:1, to the existing shareholders as on record date, which shall be announced subsequently. The issuance of bonus equity shares shall be subject to the approval of shareholders," said LIC of India in its exchange filing on Monday, April 13.

Shares of Life Insurance Corporation of India (LIC) settled at Rs 804.25 on Monday, up 0.71 per cent for the day. The total market capitalization of the company stood close to Rs 5.10 lakh crore. However, the stock is still 15 per cent below its IPO price of Rs 949 and 32 per cent below its all-time high near Rs 1,180 hit in August 2024.
 

Impact on shareholding pattern

The existing authorised equity share capital of LIC is Rs 25,000 crore and the paid up equity share capital is Rs 6,324.99 crore. Post proposed bonus issuance of 1:1, the paid up equity share capital shall increase to Rs 12,649.99 crore, it said in the filing. Post bonus issue, the existing 6,32,49,97,701 equity shares of the company shall double to 12,64,99,95,402 equity shares.
 

Impact on shareholders

A bonus issue is a corporate action where a company issues free, additional shares to existing shareholders, typically in a specific ratio to convert retained earnings into equity. Once the shares of LIC shall trade ex-bonus on the record date (which is yet to be announced), the stock price will go halved on the same day.

The bonus issue will double the number of shares for the eligible shareholders and split the value in halve. While this increases the number of shares held by an investor and the company's total outstanding shares, the total value of the investment remains the same because the stock price drops proportionately on the ex-date.

There is no additional cost for shareholders in a bonus and proportionate shareholding shall remain unchanged. Also, the face value of shares shall remain unchanged, which is Rs 10 per share for LIC. Companies issue bonus shares to reward investors, improve stock liquidity, and signal strong financial health.
 

LIC Q4 results preview

YES Securities expects LIC's new business premium (NBP) for Q4FY26 to reach Rs 73,760.1 crore, marking a 31 per cent increase quarter-on-quarter (QoQ). Annual premium equivalent (APE) is projected at Rs 18,343.4 crore, up 23 per cent QoQ but down 3 per cent year-on-year (YoY). The value of new business (VNB) is estimated at Rs 3,898 crore, rising 10 per cent YoY and 23 per cent QoQ.

YES Securities noted growth assumptions based on trends until February 2026, with NBP and APE growth of 13 per cent and 7 per cent respectively for the first two months of Q4FY26 over the previous quarter. They also expect a 3 basis points expansion in VNB margin QoQ due to changes in business mix.

Emkay Global forecasts LIC's APE to grow 13 per cent in Q4FY26, supported by strong growth in the Group segment and a favourable base. For FY26, APE growth is likely to be 15 per cent. The VNB margin for Q4FY26 is expected at 20.5 per cent, driven by focus on non-par products, with a 19.3 per cent margin for FY26 supporting 26 per cent VNB growth. Emkay maintains a 'buy' rating with a revised target price of Rs 1,000.

B&K Securities projects LIC's revenue at Rs 5,792.1 crore for Q4FY26, up 23.6 per cent YoY and 55.7 per cent QoQ. EBITDA margin is expected to improve by 150 basis points to 20.2 per cent. Adjusted PAT is forecast at Rs 4,719 crore, up 33.5 per cent YoY and 48.5 per cent QoQ. B&K Securities holds a 'hold' rating on LIC.

Antique Stock Broking anticipates a VNB of Rs 12,690 crore for FY26, with a return on embedded value of 10.8 per cent. It has a 'buy' rating and a target price of Rs 970. JM Financial also maintains a 'buy' rating with a target price of Rs 1,300 per share.
 

LIC dividend history

Since its listing in May 2022, LIC has declared five dividends: Rs 1.50 per share in August 2022, Rs 3 per share in July 2023, Rs 4 per share interim dividend in February 2024, Rs 6 per share final dividend in July 2024, and Rs 12 per share final dividend in July 2025.
 

LIC IPO history

Shares of LIC of India were listed at the bourses in May 2022 when the company raised a total of Rs 20,557 crore via its IPO. It gave a Rs 45 discount to its eligible employees and Rs 60 discount to its policyholders. The stock is trading below all the issue prices given for its investors.