Home/ Markets / Stock Markets/  LIC's debt exposure in Adani Group: FM Nirmala Sitharaman shares an update. Read here

Union Finance Minister Nirmala Sitharaman on Monday shared an update about Life Insurance Corporation of India's (LIC) debt exposure to Adani group companies. As of 5 March, the state-owned insurer's debt exposure to the billionaire Gautam Adani-led port-to-power conglomerate fell marginally to 6,183 crore from 6,347 crore as of 31 December last year.

LIC holds shares in seven out of the 10 listed companies of the Adani Group.

Of the total 6,183 crore, LIC has an exposure of 5,390 crore to APSEZ. The exposure in Adani Power (Mundra) was 266 crore, Adani Power Maharashtra Ltd - Phase I ( 81.60 crore), Adani Power Maharashtra Ltd - Phase III ( 254.87 crore), Raigarh Energy Generation Ltd ( 45 crore) and Raipur Energen Ltd ( 145.67 crore).

In a written reply to the Lok Sabha on Monday, FM Sitharaman said, "The Life Insurance Corporation of India (LIC) has informed that its debt exposure to Adani Group of Companies, was 6,347.32 crore and 6,182.64 crore, as on December 31, 2022, and March 5, 2023, respectively".

Sitharaman said five public sector general insurance companies have informed that they do not have loan or credit exposure to the Adani Group of companies.

"Public Sector Banks have informed that loans are sanctioned after assessing the viability of projects, prospective cash flows, risk factors and availability of adequate security and repayment of loans are ensured by the revenue generated by the project and not by the market capitalisation of the company," the FM stated.

The rout in the Adani Group shares that followed US-based short seller Hindenburg Research releasing a damning report on 24 January led to LIC's investments turning negative a week back.

The fall in Adani Group stocks had led to some questioning LIC's investment decision.

But the rally in the Adani Group stocks after investors poured in money has reversed the situation.

Hindenburg made a litany of allegations, including fraudulent transactions and share-price manipulation, against the Adani group, following which shares of group companies had taken a beating.

The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

With agency inputs

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Updated: 13 Mar 2023, 03:40 PM IST
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