LIC shares in focus ahead of board meeting to consider first-ever bonus issue. Check details

Shares of Life Insurance Corporation of India (LIC) will be in focus heading into trade on Monday as it is likely to announce its first-ever bonus share issue when its board meets to consider the proposal.

The state-run insurer had said last week that its board would evaluate and recommend a bonus issue. Such an issue involves distributing additional shares to existing shareholders from the company’s reserves and is typically viewed as a reflection of strong financial health and growth outlook.

While a bonus issue increases the total number of shares outstanding, it does not alter the company’s market capitalisation. It can, however, improve liquidity and make the stock more accessible to investors.

Shareholders holding LIC stock as of the yet-to-be-announced record date will be eligible for the bonus shares.

If approved, this would be LIC’s first bonus issue since listing. The company has declared five interim dividends since its market debut in May 2022.

In terms of market performance, LIC currently commands a market capitalisation of over Rs 5 lakh crore. The stock has risen 46% over the past three years but is down about 6% so far in 2026. It closed at Rs 798 per share on Friday. The government continues to hold a dominant 96.5% stake, with the remaining 3.5% owned by public shareholders.

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LIC Q3 snapshot

For the December quarter, LIC reported a 17% year-on-year increase in consolidated net profit to Rs 12,930 crore, compared with Rs 11,008 crore in the same period last year. Net premium income for Q3FY26 stood at Rs 1.26 lakh crore, up 17% from Rs 1.07 lakh crore a year earlier. The company has not yet announced the date for its January-March quarter results.

LIC shares have fallen over 11% in the last six months, and about 6% since the beginning of the year.

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