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Market capitalization of LIC's holdings in Adani stocks reaches Rs 44,670 billion

As stock prices recovered from the lows experienced in the wake of the Hindenburg report, the market value of investments made by the state-owned Life Insurance Corporation of India (LIC) in seven firms of the Adani group increased to Rs 44,670 crore.

The market value of the biggest insurer in the nation and the largest institutional shareholder in the Adani group has increased by around Rs 5,500 crore since April, according to stock exchange statistics.

The largest wager made by LIC is Adani Ports & SEZ Ltd, in which it owns 9.12% of the stock. That stake is valued at Rs 14,145 crore at the BSE's closing price of Rs 717.95 on Wednesday.

At Wednesday's closing price of Rs 2,476.90, its 4.25 percent stake in the group's flagship Adani Enterprises Ltd is valued at Rs 12,017 crore.

LIC owns shares in Adani Total Gas Ltd., a company that distributes city gas, and Ambuja Cement for around Rs. 10,500 crore. Adani Transmission Ltd, Adani Green Energy Ltd, and ACC are more Adani group companies in which LIC has holdings.

At its lowest point, the market value of Adani equities lost roughly USD 145 billion after Hindenburg's late January allegations of fraud, stock manipulation, and money laundering at the apples-to-port firm.

Despite Adani Group's denial of all charges and comparison of the study by the US investment company to an assault on India, the stock price decline had an effect on LIC's investment and there was concern that it may experience losses.

However, since the group led by billionaire Gautam Adani implemented a comeback strategy that includes paying off some debt, repurchasing some bonds, infusing new investment via a nearly USD 2 billion stake buy by a private equity investor, and a planned Rs 21,000 crore fundraising by two group companies, Adani stocks have been on the recovery path.

Stocks increased when a Supreme Court-appointed expert committee said that it had not discovered any proof of stock price manipulation in Adani group firms, and that a separate SEBI investigation into potential violations in money flows from offshore corporations had “drawn a blank.”

On January 30, LIC reported that the market value for stock held by all Adani group firms on January 27, 2023, was Rs 56,142 crore and the total purchase value of equity under all Adani group companies was Rs 30,127 crore.

The value of LIC's investment, however, became negative as a result of the ongoing decline in the price of Adani Group shares and was around Rs 27,000 crore as of February 23.

LIC benefited from the recent rise as Adani group stocks recovered the majority of their losses.

At the end of the financial year in March 2023, LIC owned 9.12% of Adani Ports & SEZ, 4.26%) of Adani Enterprises, 6.41%) of ACC, 6.3%) of Ambuja Cements, 6.02%) of Adani Total Gas, 3.68%) of Adani Transmission, and 1.36%) of Adani Green Energy.

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