LIC, in an exchange filing on April 7, said that it will hold a board meet on Monday, April 13, to consider a proposal to issue bonus shares for its shareholders.
The record date for the bonus issue of shares, if any, is yet to be determined.
Further, LIC reiterated that the trading window for dealing in the equity shares of the Corporation is closed and said that it will remain closed till 48 hours after the announcement of financial results for the quarter and year ended March 31, 2026.
This will be the first instance since the stock listed in 2022, that it will be considering a proposal to issue bonus shares for its shareholders.
While LIC has not issued any bonus shares to its shareholders, it has rewarded shareholders through dividends.
The companies issue bonus shares to capitalise on their free reserves, increase their Earnings Per Share (EPS) and paid-up capital, along with reducing the reserves. Shareholders are issued these shares at no additional cost and hence are also known as free shares.
Only those investors will be eligible for bonus shares who will buy the stock before the ex-date. If an investor purchases the shares on the ex-date or after that, they will not be eligible to get bonus shares.
LIC has very little free float in the market as 96.5% stake is held by the government. However, over 21 lakh retail shareholders, or those with authorized share capital of up to ₹2 lakh, had a 1.52% stake in the company at the end of the December quarter. The March quarter shareholding is yet to be disclosed.
Shares of LIC ended 0.6% lower at ₹740.50. The stock has fallen 8% so far this year.
