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LIC bonus issue: Firm to hold board meeting next week; check details

Swati Verma
By Swati Verma

3 min read | Updated on April 08, 2026, 07:45 IST

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SUMMARY

LIC bonus issue: A bonus issue is a corporate action wherein a company gives additional shares to its existing shareholders in proportion to their existing holdings.

Stock list

LICI
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LIC share price, April 8, 2026

Shares of the company ended at ₹740.50 apiece on the NSE, down 0.6% on Tuesday, April 7. | Image: Shutterstock

LIC bonus issue: Shares of Life Insurance Corporation of India (LIC) are expected to hog the limelight on Wednesday, April 8, as the company is slated to hold a board meeting on Monday, April 13, to consider and recommend a proposal for the issue of bonus shares.
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What is a bonus issue?

A bonus issue is a corporate action wherein a company gives free additional shares to its existing shareholders in proportion to their existing holdings.

For example, in a 1:1 bonus issue, an investor holding one share will receive one extra share at no cost. Companies usually issue bonus shares to reward shareholders and improve stock liquidity.

What happens when a bonus issue becomes effective?

When the bonus issue becomes effective (on the ex-date), the stock price adjusts downward to reflect the increased number of shares in the market.

This does not mean investors lose value—rather, the total investment value remains the same, just split across more shares.

For instance, if a stock trading at ₹1,000 announces a 1:1 bonus, its price typically adjusts to around ₹500 after the bonus, while the number of shares held doubles.

LIC share price trend

Shares of the company ended at ₹740.50 apiece on the NSE, down 0.6% on Tuesday, April 7.

The stock has remained listless so far in 2026. Data show that the shares have slipped over 13% year-to-date (YTD). The stock has fallen over 17% in the past six months and 8% in 1 month (as of the April 7 closing level).

LIC Q3 FY26 earnings

State-owned life insurer LIC reported a 17% jump in net profit at ₹12,958 crore in the third quarter ended December 2025 (Q3 FY26).

The country's biggest insurer, LIC, earned a net profit of ₹11,056 crore in the year-ago period.

During the quarter, the net premium income of the insurer rose to ₹1,25,613 crore from ₹1,06,891 crore seen in the same period a year ago, LIC said in a regulatory filing.

The total income also improved to ₹2,33,984 crore in the latest December quarter compared to ₹2,01,994 crore in the same period a year ago.

The insurer paid a net commission of ₹6,011 crore as against ₹5,966 crore in the third quarter of the previous financial year.

As regards new business, LIC garnered a first-year premium of ₹10,605 crore as compared to ₹7,285 crore in the same quarter a year ago.

With inputs from PTI
Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Upstox. Please consult with a financial advisor before making any investment decisions.
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About The Author

Swati Verma
Swati Verma is a business journalist with over 11 years of experience. She writes on equities, corporate earnings, sectoral trends, and industry outlook, among others. At Upstox, she leads financial markets coverage.

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