The board of Life Insurance Corporation of India (LIC) on Monday approved a 1:1 bonus issue of equity shares aggregating up to ₹6,324.99 crore, subject to shareholder approval.

Under the proposal, shareholders will receive one fully paid-up equity share of face value ₹10 each for every one share held as on the record date. The company will issue 632.49 crore equity shares by capitalising reserves and surplus as of December 31, 2025.

Following this, LIC’s issued, subscribed and paid-up share capital will double to ₹12,649.99 crore from ₹6,324.99 crore. The life insurer said the proposal for the issue of bonus shares shall not impact the solvency margin and any other financial parameters.

LIC also said that the bonus issue will bring a balance between paid-up capital and accumulated reserves, and also enhance liquidity and marketability by making the shares more affordable and attractive to a broader range of investors. The bonus shares are expected to be credited or dispatched within two months of board approval, by June 12, 2026.

According to the December quarter shareholding pattern, LIC had around 21 lakh retail shareholders, holding a 1.5 per cent stake.

“Since listing in May 2022, LIC has been paying dividends consistently and also increasing the dividend per share over a period of time from ₹1.50 per share to ₹12 per share. We have been continuously evaluating various mechanisms for rewarding our shareholders, and we believe this proposed bonus issue is a significant step taken by us in that direction,” said R. Doraiswamy, CEO & MD, LIC.