LIC Approves 1:1 Bonus Share Issue and Director Appointments
Life Insurance Corporation of India members approved all five resolutions via postal ballot, including a 1:1 bonus share issue capitalising ₹6324,99,77,010 from reserves. The company also secured approvals for the re-appointment of Independent Directors Shri Mahalingam G and Dr. V.S. Parthasarathy, and the appointment of Ms. Shalini Pandit as Government Nominee Director and Shri Ramakrishnan Chander as Managing Director.
*this image is generated using AI for illustrative purposes only.
Life Insurance Corporation of India members have approved all five resolutions put to postal ballot, with results submitted by the scrutinizer on May 18, 2026. The voting was conducted exclusively through remote e-voting on the NSDL platform, running from 9:00 a.m. (IST) on April 18, 2026 to 5:00 p.m. (IST) on May 17, 2026. The deemed approval date for the postal ballot was May 17, 2026, with a cut-off date of April 15, 2026. As on the cut-off date, the total number of members stood at 21,52,519.
Postal Ballot Voting Summary
All five resolutions — comprising three Special Resolutions and two Ordinary Resolutions — were passed with requisite majority. The scrutinizer, Mr. S.N. Vishwanathan (FCS: 13685 and COP No.: 24335), Managing Partner, M/s. S.N. Ananthasubramanian & Co., Company Secretaries, confirmed that all votes cast were found to be valid. The following table summarises the outcome of each resolution:
| Resolution: | Description | Type | Votes in Favour (%) | Votes Against (%) |
|---|---|---|---|---|
| Item 1 | Issue of Bonus Shares | Special | 99.9998% | 0.0002% |
| Item 2 | Re-appointment of Shri Mahalingam G as Independent Director | Special | 99.7881% | 0.2119% |
| Item 3 | Re-appointment of Dr. V.S. Parthasarathy as Independent Director | Special | 99.9687% | 0.0313% |
| Item 4 | Appointment of Ms. Shalini Pandit as Government Nominee Director | Ordinary | 99.7927% | 0.2073% |
| Item 5 | Appointment of Shri Ramakrishnan Chander as Managing Director | Ordinary | 99.7957% | 0.2043% |
Bonus Share Issue Approved
The most significant resolution pertains to the issuance of bonus equity shares. Members approved the capitalisation of ₹6324,99,77,010/- (Rupees Six Thousand Three Hundred Twenty-Four Crores Ninety-Nine Lakh Seventy-Seven Thousand and Ten Only) from reserve and surplus. The bonus shares will be issued in the proportion of 1:1, meaning 1 (One) bonus equity share of ₹10/- (Rupees Ten Only) each for every 1 (One) existing fully paid-up equity share held as on the Record Date. This Special Resolution received 6198867002 votes (99.9998%) in favour and 14769 votes (0.0002%) against, out of a total of 6198881771 votes polled.
The bonus shares will be allotted in dematerialised form only and credited to respective beneficiary demat accounts. For members holding shares in physical form as on the Record Date, the bonus equity shares will be credited to a new Suspense Escrow Demat Account until requisite documents are received. The Board of Directors has been authorised to take all necessary steps for listing of the bonus equity shares on the stock exchanges where the Corporation's equity shares are currently listed.
Director Appointments and Re-appointments
Three resolutions relating to board-level appointments were also approved. The key details are as follows:
- Shri Mahalingam G (DIN: 09660723): Re-appointed as Independent Director for one further term of six (6) months commencing from January 29, 2026 up to July 28, 2026. This Special Resolution received 6185733917 votes (99.7881%) in favour and 13136556 votes (0.2119%) against.
- Dr. V.S. Parthasarathy (DIN: 00125299): Re-appointed as Independent Director for one further term of six (6) months commencing from January 29, 2026 up to July 28, 2026. This Special Resolution received 6196926099 votes (99.9687%) in favour and 1943132 votes (0.0313%) against.
- Ms. Shalini Pandit (DIN: 07780142): Appointed as Government Nominee Director pursuant to the Government of India's notification dated December 03, 2025. This Ordinary Resolution received 6186016416 votes (99.7927%) in favour and 12852663 votes (0.2073%) against.
- Shri Ramakrishnan Chander (DIN: 11331783): Appointed as Managing Director pursuant to the Government of India's notification dated December 01, 2025, in the pay scale of ₹2,05,400/- to ₹2,24,400/- with effect from December 01, 2025 and up to the date of his attaining superannuation (i.e., September 30, 2027), or until further orders, whichever is earlier. This Ordinary Resolution received 6186202510 votes (99.7957%) in favour and 12666230 votes (0.2043%) against.
Voting Participation Details
The total number of shares held across all categories stood at 6324997701. Voting participation across all resolutions was approximately 98% of outstanding shares. The Promoter and Promoter Group, holding 6103622781 shares, cast 100% of their votes in favour of all five resolutions. Public Institutions and Public Non-Institutions participated via e-voting, with no votes recorded through poll or postal ballot modes.
The disclosure was made under Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and submitted to BSE Limited and the National Stock Exchange of India Ltd. on May 18, 2026. The Postal Ballot Notice was dispatched on April 17, 2026 to 20,67,388 members who had registered their email IDs. An advertisement regarding the postal ballot was published on April 18, 2026 in The Times of India (English), Navbharat Times (Hindi), and Maharashtra Times (Marathi).
Historical Stock Returns for LIC of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.40% | -2.12% | -1.68% | -8.18% | -16.76% | -9.89% |
How might LIC's 1:1 bonus share issuance impact its stock price, trading liquidity, and retail investor participation in the near term?
With Shri Mahalingam G and Dr. V.S. Parthasarathy re-appointed for only six-month terms ending July 2026, what succession or governance changes could LIC be signaling at the board level?
How will the appointment of Shri Ramakrishnan Chander as Managing Director until September 2027 influence LIC's strategic priorities, including its digital transformation and market share expansion?
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