The recent rally in the Adani group company share price has provided a breather for Life Insurance Corporation of India’s (LIC), the country’s largest life insurer. LIC is a major institutional investor in Adani group companies and the market value of its investment has appreciated significantly in the last two months.
The value of LIC’s holdings in Adani group now stands near ₹44,600 crore, showing an increase of around ₹5,500 crore since April this year. This is still far from the high that LIC’s investment value, in Adani stocks, had touched before the Hindenburg report was released.
As of March 31, 2023, LIC held 9.12% stake in Adani Ports & SEZ; 4.26% stake in Adani Enterprises; 6.41% in ACC; 6.3% in Ambuja Cements; 6.02% in Adani Total Gas; 3.68% in Adani Transmission and 1.36% stake in Adani Green Energy.
As per May 24 closing prices, LIC’s total stake in all Adani firms is valued at around ₹44,600 crore as against around ₹39,200 crore at the end of March.
The recent rally in the Adani group company share price has provided a breather for Life Insurance Corporation of India (LIC), the country’s largest life insurer. LIC is a major institutional investor in Adani group companies and the market value of its investment has appreciated significantly in the last two months.
The value of LIC’s holdings in Adani group now stands near ₹44,600 crore, showing an increase of around ₹5,500 crore since April this year. This is still far from the high that LIC’s investment value, in Adani stocks, had touched before the Hindenburg report was released.
On January 30, LIC said the total purchase value of equity under all Adani group companies was ₹30,127 crore and the market value for the same on January 27, 2023 was ₹56,142 crore.
However, with the continuous slump in Adani group share prices, the value of LIC’s investment turned negative and stood at nearly ₹27,000 crore on February 23.
As of March 31, 2023, LIC held 9.12% stake in Adani Ports & SEZ; 4.26% stake in Adani Enterprises; 6.41% in ACC; 6.3% in Ambuja Cements; 6.02% in Adani Total Gas; 3.68% in Adani Transmission and 1.36% stake in Adani Green Energy.
As per May 24 closing prices, LIC’s total stake in all Adani firms is valued at around ₹44,600 crore as against around ₹39,200 crore at the end of March.
LIC’s investment in Adani Group stocks took a massive beating after the US-based short seller Hindenburg Research labeled several allegations on the Gautam Adani-led conglomerate, including of stock price manipulation and misgovernance in February.
This had eroded over $100 billion in market capitalization of the group in just a month. The market rout also severely impacted the investment of state-run insurance behemoth LIC.
Despite this, LIC increased its shareholding in Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas, during the January-March 2023 period, as per the data available.
