With Adani Group Stocks In Freefall, LIC Says Its Exposure Is Less Than 1% of Total Assets

Life Insurance Corporation of India (LIC) said in a statement its total exposure to Adani Group companies is less than 1% of its total assets under management (AUM) at book value.

What Happened? : LIC, which is among the largest institutional investors in the country, has issued a clarification stating that the insurance giant’s total purchase value of equity, under all Adani Group companies, is ₹30,127 crore and the market value for the same was ₹56,142 crore when markets closed on Jan. 27.

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The insurer further stated that the total amount invested under Adani Group amounts to ₹36,474.78 crore as of date. Commenting on LIC’s investments in Adani’s Group debt securities, the state-owned entity mentioned that all of them are currently rated ‘AA’ and above, which is in keeping with the guidelines set by the Insurance Regulatory and Development Authority (IRDAI) — the statutory body in charge of regulating and licensing the insurance industry in India.

LIC held 4.23% of Adani Enterprises, 9.14% of Adani Ports, 3.65% of Adani Transmission, 1.28% of Adani Green Energy, and 5.96% of Adani Total Gas, as of December quarter’s end.

The clarification arrives as Adani Group firms have seen an incredible plunge after a scathing report on the conglomerate led by Gautam Adani by U.S. short-seller Hindenburg Research.

The Press Trust of India earlier reported that LIC has invested an additional ₹300 crore in buying 9,15,748 more shares as an anchor investor in a ₹20,000 crore new share sale by Adani Enterprises Ltd.

Price Action: LIC shares closed 1.57% lower at ₹655.50 on Monday.

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Posted In: Adani GroupGautam AdaniHindenburg ResearchInsurance Regulatory and Development AuthorityLIC