LIC Gives Big Gift to Investors, Buy 1 Share and Get 1 Share Free

LIC Share: The largest insurance provider in the country, LIC (Life Insurance Corporation of India), has shared some exciting news for its investors. The board has declared a 1:1 bonus share issuance, marking the first time since its listing. This means that for every LIC share an investor holds as of the record date, they will receive an additional share at no cost, effectively doubling their holdings. However, it’s important to note that this won’t immediately change the total investment value, as the share price will adjust accordingly.

LIC plans to issue a total of 632.49 crore new equity shares as part of the bonus issue, each with a face value of Rs 10. The company will allocate up to Rs 6,324.99 crore from its reserves and surplus for this bonus (based on data as of December 31, 2025). Following the bonus issue, the paid-up share capital will rise from Rs 6,324.99 crore to Rs 12,649.99 crore. Nevertheless, the authorized share capital will stay at Rs 25,000 crore, which consists of 2,500 crore shares.

As of December 31, 2025, LIC boasts a robust reserve of Rs 1.46 lakh crore, which underpins this bonus issue. According to its shareholding structure, LIC has around 2.1 million retail investors, holding a combined stake of about 1.5%. Additionally, mutual funds, foreign portfolio investors (FPIs), and the government possess substantial stakes.

LIC previously held the record for India’s largest IPO (before Hyundai Motor India), offering shares at three different price points: Rs 949 (general), Rs 904 (retail), and Rs 889 (policyholders). Currently, the share price is trading below all these levels. This initiative by LIC is viewed as a move to bolster investor confidence and enhance the stock’s liquidity. When stock prices rise in the market, it can become challenging for smaller investors to buy in. In such cases, a bonus issue can help lower the stock price to a more accessible level, thereby boosting trading volume and drawing in new investors.

Although LIC’s stock has seen some pressure recently, falling about 5% year-to-date, it has remained positive with a slight increase over the past year. Regarding the company’s fundamentals, LIC recently performed well in the December quarter, with profits rising 17% year-on-year to Rs 12,930 crore. Net premium income also increased 17% to Rs 1.26 lakh crore, reflecting the company’s strong growth.

LIC Share Performance

LIC (Life Insurance Corporation of India) stock saw a positive trend on April 13, 2026 , closing at Rs 809, up 1.33%. This gain reflects increased investor interest following news of the recently announced bonus share (1:1). Although the stock had been under slight pressure for some time, today’s recovery is a positive sign.

This bonus issue from LIC is being seen as a positive sign for investors. It not only demonstrates the company’s strong balance sheet but also shows that management is confident in its future performance. This could be a good opportunity for long-term investors, but they should consider market conditions and their financial goals before investing.