LIC Investment in Adani Share: After 4 days of non-stop gains in shares of Adani Group, the market value of investment by Life Insurance Corporation of India (LIC) has increased to Rs 39,000 crore.
Earlier in a disclosure to the stock exchanges in late January, LIC had announced that the total purchase value of equity bought under all Adani group companies over the past several years is Rs 30,127 crore and the market value is accordingly. 56,142 crore at the time of market closing on January 27.
LIC’s share in 7 out of 10 companies of Adani
Of the 10 Adani Group companies, LIC has stake in 7 companies – Adani Enterprises, Adani Ports, Adani Total Gas, Adani Transmission, Adani Green Energy, ACC and Ambuja Cement. Looking at the December quarter shareholding pattern, the total investment by LIC in these shares is now valued at around Rs 39,000 crore.
It is not yet known whether LIC has sold or bought shares since late December. Market data shows that the value of LIC’s investment in Adani shares was over Rs 81,000 crore as on January 24. This was before the Hindenburg Report was released.
What did LIC say?
LIC’s total assets under management stood at over Rs 41.66 lakh crore as on September 30, 2022. To this, LIC had said that its exposure to the Adani group was less than 1% of the total AUM at book value. It was being told in a way that LIC has very little money invested in Adani’s shares.
What is the whole matter?
Adani Group’s loss-making run in the stock market began when US-based short seller firm, Hindenburg Research came out with an explosive report on the group. It raised concerns about the group’s mounting debt and alleged stock manipulation and irregular use of tax havens, among other things.
While the Adani group has rejected the allegations made by Hindenburg. The report has raised concerns among investors and financial institutions, resulting in a steady decline in the share prices of the group’s listed companies.
