New Delhi, April 15 -- Life Insurance Corporation (LIC) saw its shares spike 5% in Wednesday's intraday deals, reaching a five-week high of Rs.841.30 apiece after the company approved a 1:1 bonus issue. Today's rally also marked the third straight day of gains for the stock, taking its gains to 6% over the period, based on today's high.

The company's board, at its meeting on Monday, approved the issuance of bonus equity shares in the proportion of 1:1, subject to shareholder approval. This marks the company's first bonus issue since its listing in May 2022.

Although the company has been rewarding shareholders by consistently paying dividends-raising them from Rs.1.50 per share to Rs.12 per share over time-the bonus issue represents anot...