LIC announces 1:1 bonus issue; share count to double

Bonus Above 1to1Corporate Actions View source PDF Explain this filing

LICI · price

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Price reactionminutes from the announcement price · days from the prior close

+4.0%Reaction day

₹404.50

prior close

₹415.00

announcement price

After-mkt

timing

Nifty Midcap 150market · index membership as recorded later (tracked since Jun 2026)+2.2%+1.8% vs market

Life Insurance peers, median of 5sector+2.9%+1.1% vs sector

On the reaction day the stock moved 1.8 pts more than Nifty Midcap 150 and 1.1 pts more than its Life Insurance peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

-0.4

10m

+0.0

15m

+0.5

30m

+0.4

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

+4.0+2.2+1.8+2.9+1.1

Next day

+4.1+2.8+1.2+2.8+1.3

+4.2+4.1+0.1+2.5+1.7

+2.2+4.0-1.8+2.1+0.2

+1.9+4.6-2.7-0.1+1.9

+1.4+4.8-3.4-1.5+2.9

+0.4+3.3-2.9-5.3+5.7

15d

+0.1+7.7-7.5+1.2-1.1

-1.2+5.1-6.3-2.6+1.3

+0.4+6.6-6.3-6.3+6.7

+8.8+9.3-0.6-2.6+11.4

UpDownMarket · Nifty Midcap 150Sector · Life Insurance peers, median of 5Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

LIC's board has approved a 1:1 bonus issue — 1 free equity share for every 1 held. This will issue ~63.25 crore new shares (~₹6,325 crores) by capitalising reserves, doubling total share count from ~63.25 crore to ~126.5 crore. Funded from free reserves of ~₹1.46 lakh crore as of Dec 31, 2025. Bonus shares to be credited within 2 months (by June 12, 2026). Subject to shareholder approval. Record date to be announced.

Likely market impact

Shareholders get 1 free share per share held, doubling holdings. Share price adjusts proportionally. Signals strong reserves. Awaiting record date.