Shares of Life Insurance Corporation of India (LIC) have experienced a 7% rally over two trading sessions after the company announced its first-ever bonus issue of shares in a 1:1 ratio. This decision, approved by the board during a meeting, aims to reward its 2.2 million shareholders. Following the announcement, LIC's stock price surged nearly 5% on Wednesday and reached an intraday high of ₹856.35 (approximately $10.40 USD) on Thursday. The company plans to capitalize up to ₹6,325 crore (around $760 million USD) from its reserves to facilitate the bonus shares, which will be credited within two months of the board approval, expected by June 12, 2024. The record date for determining eligible shareholders is yet to be announced. While bonus shares increase the total number of outstanding shares, they do not alter the company's market capitalization but can enhance liquidity and affordability for investors. LIC's shares have seen significant volatility since their IPO in May 2022, initially listing at a discount of over 8% and later declining by more than 39% before recovering by over 130% to reach a high of ₹1,222 (approximately $14.80 USD) in August 2024.