This will be the first instance of LIC issuing any bonus issue for its shareholders since it became a public company back in 2022.
Record date for the bonus issue, if any, is yet to be determined.
As a stock, LIC does not have a significant free float in the market, as the government continues to hold 96.5% stake in the company.
Based on the December quarter shareholding pattern, LIC had a total of nearly 21 lakh retail shareholders, or those who have an authorised share capital of up to ₹2 lakh. These retail shareholders had a 1.5% stake in the company.
Mutual Funds and FPIs held the remaining available stake, apart from the government.
LIC, before Hyundai Motor India, was the largest Indian IPO, managing to see full subscription. The company has three different issue prices, ₹949 as the original price, ₹904 for retail shareholders, and ₹889 for existing policyholders. The stock trades below all of these three levels.
Shares of LIC ended 0.8% higher on Friday at ₹799.65. The stock was up 10% last week but is still down 6% on a year-to-date basis.
