Noida, Apr 8 (APAC Media): Shares of the Life Insurance Corporation of India (LIC) surged more than 8 per cent on Wednesday, driven by investor optimism after the state-owned insurer announced a board meeting to discuss a landmark corporate move.
Share of LIC surged 6 per cent to Rs 791.30 on the BSE.
At NSE, stocks rose 6.6 per cent to Rs 791.75 on the intraday trading.
The surge followed a regulatory filing indicating that LIC’s board will convene on April 13, 2026, to consider recommending the insurer’s first-ever bonus share issue.
If approved by the board and later endorsed by shareholders, the move would be a landmark step aimed at boosting shareholder value and improving stock liquidity.
Bonus shares are issued to reward existing shareholders by allotting additional shares at no cost, funded from the company’s reserves.
While they do not change the company’s overall market capitalisation, bonus issues can improve stock liquidity and make shares more accessible by increasing the number of outstanding shares.
Investors said optimism over LIC’s upcoming board meeting and expectations of a favorable decision triggered heavy buying on Wednesday, driving the stock higher on both the Bombay Stock Exchange and National Stock Exchange after a period of earlier weakness.
Since its public listing in May 2022, LIC has paid interim dividends, but a bonus share issue would be a first for the state-owned insurer.
The record date for eligibility, if announced, is still pending.
According to a BSE filing, LIC’s trading window will remain closed ahead of its financial results for the year ending March 31, 2026, and will reopen 48 hours after the results are made public, in accordance with insider trading regulations.
The development comes amid broader market volatility, with benchmarks such as the Sensex and Nifty50 navigating mixed cues, but LIC’s share surge stands out as a key story in the insurance and PSU segments today.
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