Life Insurance Corporation of India has successfully completed the allotment of 632.49 crore equity shares under its maiden 1:1 bonus issue, as reported by Business Standard. The company allotted 632,49,97,701 equity shares of face value ₹10 each as fully paid-up bonus equity shares to eligible members whose names appeared in the Register of Members or Register of Beneficial Owners as on the record date of May 29, 2026. Consequent to this allotment, LIC's paid-up equity share capital has been increased to ₹12,649.99 crore, divided into 12,64,99,95,402 equity shares of face value ₹10 each.
Shares of insurance behemoth Life Insurance Corporation of India (LIC) flashed a 50% downside from the last closing price on the National Stock Exchange (NSE) on Friday, 29 May. According to reports from Stock Market News, the stock touched an intraday low of ₹416.25 as against the last close of ₹830. This dramatic decline occurred as the PSU stock turned ex-record for its 1:1 bonus issue. As per Moneycontrol, LIC shares were trading at ₹416.10 in early morning trade, down 49.87% from the previous close, reflecting the adjustment for the 1:1 bonus issue.
The government currently holds 96.5% stake in LIC, having sold 3.5% through an IPO in May 2022 at a price band of ₹902-949 per share. The share sale fetched the government around ₹21,000 crore. The bonus issue would pave way for further share sale or offer for sale (OFS) of LIC. The government is working on plans to come out with an OFS of LIC, with the bonus issue serving as a precursor to potential future divestment plans.
In a significant development, the Allahabad High Court has upheld the government's decision to deploy LIC employees as census enumerators and supervisors, dismissing a legal challenge. As reported by The Hindu BusinessLine, Justice Dinesh Pathak ruled that the authorized authority/zonal officer did not commit any error or illegality in directing LIC employees to discharge census duties. The court rejected the petitioner's argument that only local authority employees could be requisitioned under section 4-A of the Census Act, 1948, stating that LIC falls within the ambit of a 'commercial establishment' and its staff can be engaged for census operations. The judgment, dated May 29, confirmed that the authorized authority has competent power to issue orders commanding LIC employees to act as enumerators/supervisors for census work.
