Life Insurance Corporation of India (LIC), the largest institutional investor in India, has announced a 1:1 bonus share issuance for its shareholders, marking its first such reward since its public market debut four years ago. This decision, announced on Monday, aims to double LIC's paid-up equity base and comes amid a prolonged period of underperformance for its stock, which currently trades at a 15% discount to its IPO price of ₹949. Shareholders will receive one fully paid-up equity share of ₹10 each for every share held on the record date. The bonus shares will be issued from reserves totaling approximately ₹6,325 crore, with LIC's overall reserves exceeding ₹14.64 lakh crore as of December 2025. Following this issuance, LIC's paid-up equity capital will increase from ₹6,325 crore to about ₹12,650 crore, and the number of outstanding shares will rise to roughly 12.65 billion. This move is subject to shareholder approval, and LIC expects to complete the allotment within two months of board approval by June 12. Despite the announcement, LIC shares saw a modest increase of 0.71% to ₹804.25 on the Bombay Stock Exchange, while the broader market index declined by 0.91%.