LIC shareholding in Adani group is within IRDAI framework, says DIPAM Secretary
The total assets under management (AUM) of LIC are over ₹41.66 lakh as of September 30, 2022. Therefore, LIC's exposure in the Adani group, as of date, is 0.975 per cent at book value
Life Insurance Corporation of India (LIC) shareholding in Adani group is within the regulatory and its risk management framework. The Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kant Pandey said in this regard during an exclusive interview to ANI.
While referring to a recent statement by LIC, the DIPAM Secretary said, "LIC has already made it clear and through a public notice of what are their level of investments and what is value is on a particular date of those investments," adding, “LIC can invest in equities because of inherent risk and as per the risk management framework. And within the overall framework of IRDAI which is the regulator.”
On the recent bloodbath in Adani group stocks, Tuhin Kant Pandey said, "Pandey said, "They go into the safe government securities called Gsecs and they also have some rated bonds and equity also they invest they have their investment strategy of going into different things and they have a concentration risk portfolio benchmarks."
However, he said he was not looking into the Adani Group matter as the subject is not within his remit to comment on any private company, as DIPAM deals with central public sector enterprises.
"They (LIC) go into the safe government securities called Gsecs and they also have some rated bonds and equity also they invest they have their investment strategy of going into different things and they have a concentration risk portfolio benchmarks," Pandey said.
"So I don't think that we can really say that the LIC is impacted this way or that way and whatever it is impacted from the stock price movements, they will be reflected in their books and LIC has already given a clarification. So beyond that, I can say and if you need further clarification you," Pandey said.
While replying to a Live Mint query on 30th January 2023, LIC had said that the insurance behemoth has invested ₹30,127 crore in Adani group assets that it invested over the years, and absolute market value of its investment as on 27th January 2023 was ₹56,142 crore.
Comparing LIC shareholding in Adani group with total asset under management (AUM), LIC's exposure in the Adani group, as of date, is 0.975 per cent at book value, the insurance major said.
While replying to a question on dividends and disinvestments, the DIPAM Secretary said that the target of the next year is ₹94,000 crore, of which ₹51,000 crore is for divestment and ₹43,000 crore as dividend receipts.
"...although there is an overall target, we don't chase the target, as if you know, at any cost we have to do that. We have to also look at the market and shareholders and then only plan disinvestments," DIPAM Secretary Tuhin Kant Pandey concluded.
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First Published:3 Feb 2023, 07:51 AM IST
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