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Business News/ Markets / Stock Markets/  Adani stocks' rally helps LIC boost its investment by almost 50%, value still below pre-Hindenburg levels
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Adani stocks' rally helps LIC boost its investment by almost 50%, value still below pre-Hindenburg levels

Adani stocks investment: 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.

LIC increased its shareholding in Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas, during the January-March 2023 period,Premium
LIC increased its shareholding in Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas, during the January-March 2023 period,

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.

CompanyStake as on March 31, 2023 (%)Market Value as on May 24, 2023 (Rs. Crore)
Market Value as on March 31, 2023 (Rs. Crore)
Adani Ports & SEZ9.1214,136.6312,446.76
Adani Enterprises4.2612,017.058,498.71
Adani Total Gas6.025,263.535,741.61
Ambuja Cements6.35,270.664,571.62
Adani Transmission3.683,737.994,096.39
ACC6.412,144.122,006.29
Adani Green Energy1.362,114.791,899.76
Total 44,684.7739,261.14

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.

Also Read: Gautam Adani back in top 20 billionaires list as net worth swells to $64.2 billion

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.

Read here: LIC raises stake in 4 Adani Group companies in Q4 post Hindenburg saga

However, most Adani group stocks recouped the majority of its losses led by the recent rally fueled by certain factors. The biggest relief for the group came after the Supreme Court of India gave a clean chit against the allegations made by Hindenburg Research. The SC panel said it found no evidence of a 'regulatory failure' by the group.

Additionally, US-based GQG Partners LLC increased its stake in Adani group companies by 10%. This was in addition to the Rajiv Jain-led investment firm’s almost 15,446 crore investment into four Adani Group companies in March, the value of which now stands at around 25,000 crore.

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Published: 24 May 2023, 04:17 PM IST
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