Life Insurance Corporation of India (LIC) has fixed May 29 (Friday) as the record date for its first-ever bonus issue in the ratio of 1:1, effectively making today the last date for interested investors to buy the shares of the state-run insurance behemoth to be eligible for the bonus shares.

Only those shareholders who own LIC shares in their demat accounts as on Friday will be eligible to receive the bonus shares. Due to SEBI's T+1 settlement norm, investors must buy the company's shares at least one trading day before the record date to ensure they are credited to their demat accounts by that date and thus be eligible for the corporate action.

Also Read: LIC bonus issue: Insurance behemoth gets shareholders' approval for 1:1 issue. Check details

However, markets will remain closed on May 28 (Thursday) on account of Bakri Id. This effectively makes May 27 (Wednesday) the last date to buy the shares of LIC so that they are credited to the shareholders’ accounts by the record date (Friday), making them eligible for the bonus issue bonanza.

All about LIC’s bonus issue

LIC in April approved the plan to issue one fully paid-up equity share of Rs 10 each for every fully paid-up equity share of Rs 10 each held by every eligible shareholder as on the record date. The company said that it will issue the bonus shares by capitalising up to Rs 6,325 crore out of its reserves and surplus available as of December 31, 2025, which stood at nearly Rs 1.5 lakh crore.

Also Read: LIC announces 1:1 bonus issue, sets May 29 as record date

A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolios.

This marks LIC’s first-ever bonus issue for its more than 21 lakh shareholders. The state-run insurance behemoth has so far announced five interim dividends since its debut on stock markets in May 2022.

LIC Q4 earnings snapshot

LIC last week reported a consolidated net profit of Rs 23,467 crore for the fourth quarter of FY26, marking a 23% year-on-year (YoY) rise from the Rs 19,039 crore profit reported in the corresponding quarter of the previous financial year. The firm’s net premium income, meanwhile, rose 12% YoY to Rs 1.65 lakh crore for the quarter under review against Rs 1.48 lakh crore a year earlier.

For the financial year ended March 31, 2026, LIC reported a more than 5% rise in assets under management (AUM) to Rs 57.29 lakh crore, while net profit increased over 19% year-on-year to Rs 57,419 crore.