Life Insurance Corporation of India announced its first-ever bonus issue in a 1:1 ratio, triggering a 7% rally in just two trading sessions. The board approved issuance of one fully paid equity share for every share held, capitalizing Rs 6,325 crore from reserves. Bonus shares will be credited by June 12, subject to record date determination. While bonus issues don't alter market capitalization, they enhance liquidity and affordability for investors. LIC has distributed five interim dividends since its May 2022 listing. The stock currently trades near its IPO price after declining 30% from its August 2024 high of Rs 1,222, signaling the company's confidence in its financial strength and growth trajectory.
Post from MarketNews_en
Log in to interact with content.