Synopsis:- A PSU insurer’s stock in focus after approving a Rs 6,324 crore 1:1 bonus issue. Shareholders will receive 1 extra share per holding. Premium income rose 9%, with strong group growth, though market share saw a slight decline amid rising competition.
The shares of one of the largest insurance companies in India will be the focus in tomorrow’s trading session after the board considered and approved the bonus issue in the proportion of 1:1
With a market capitalisation of Rs 5,08,687.94 crore, on Monday, the shares of Life Insurance Corporation of India closed at Rs 804.25 per share, an increased around 6.34 percent as compared to the previous closing price of Rs 743.35 apiece.
Bonus Meeting
According to the exchange filing, Life Insurance Corporation of India has approved a 1:1 bonus share issue, meaning shareholders will receive one additional fully paid equity share of Rs 10 for every share held on the record date. The move will be executed by capitalizing reserves of up to Rs 6,324 crore. This step aims to enhance liquidity, improve retail participation, and make the stock more accessible without impacting the company’s overall valuation.
For example, if you hold 100 shares of Life Insurance Corporation of India, you will receive 100 additional shares under the 1:1 bonus issue, taking your total holding to 200 shares. The company will issue these extra shares by capitalizing reserves of up to Rs 6,324 crore. While the number of shares increases, the overall value of your investment remains unchanged, as the stock price adjusts accordingly.
Financial Highlights
The company reported a strong performance, with revenue increasing 16% from Rs 203,751 crore to Rs 235,954 crore in Q3FY26. Profit rose 17% from Rs 11,009 crore to Rs 12,908 crore, slightly ahead of revenue growth, indicating improved efficiency and margin expansion, reflecting a healthy and consistent earnings momentum.
Over the period from Dec 2024 to Dec 2025, operating performance remained steady with gradual improvement. Operating profit increased from Rs 11,934 crore in Dec 2024 to Rs 12,366 crore in Dec 2025, despite some quarterly fluctuations. OPM stayed largely stable in the 4–6% range, indicating consistent cost management and stable operating efficiency throughout the year.
Life Insurance Corporation of India (LIC) delivered a steady performance in 9MFY26, with total premium income rising 9.02% to Rs 3,71,293 crore. Group premium grew 13.56%, while individual new business increased 5.89%. Renewal premium remained strong, though market share saw a slight decline, indicating rising competition despite overall business growth momentum.
Life Insurance Corporation of India (LIC) is the country’s largest life insurer, offering a wide range of insurance and investment products. With a strong distribution network and deep customer trust, LIC plays a crucial role in financial protection and long-term savings for millions of individuals across India.
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