LIC’s investment in Adani Group companies stood at Rs 44,750 crore LIC’s investment in Adani Group companies stood at Rs 44,750 crore LIC’s investment in Adani Group companies stood at Rs 44,750 crore Life Insurance Corporation of India (LIC) has neither bought nor sold any Adani shares after the fallout from Hindenburg report's allegations, said LIC chairman Siddhartha Mohanty.
“Whatever was there (investment), was prior the report (Hindenburg), but after that we have not taken any position,” said Mohanty in an interview with ET Now.
“Now you see yourself and assess what is the value of those investments,” he added while referring to the recent run-up in the Adani share prices triggered by a Supreme Court panel report.
The market value of state-owned LIC’s investment in Adani Group companies stood at Rs 44,750 crore as on May 24.
The investment has recovered by Rs 18,400 crore since the post-Hindenburg lows as the conglomerate’s stock rallied after Supreme Court-appointed expert committee reported that they didn’t find any conclusive evidence of stock price manipulation in shares of Adani Group companies.
"Our investment policy is we go by total growth of portfolio, not single scrip. If that grows and gives decent returns to all our investors, there shouldn't be any concerns among our shareholders and policy holders," said Mohanty on Thursday.
He also assured that investments of LIC are in correct place and people should have total confidence in the company.
The previous chairman of LIC, MR Kumar, didn’t get an extension for his role amid scrutiny of LIC's investments in Adani stocks.
The recovery in Adani stocks was driven by debt repayment, GQG Partners’ investment and the Supreme Court panel’s report not finding any regulatory failure in the Adani-Hindenburg case.
LIC holds 9.12% stake in Adani Ports and Special Economic Zone, 4.26% in Adani Enterprises Ltd, 6.3% in Ambuja Cements Ltd, 6.4% in ACC, 1.3% in Adani Green Energy Ltd, 6% in Adani Total Gas and 3.6% in Adani Transmission.
LIC on Wednesday reported a net profit of Rs 13,191 crore for the fourth quarter ended March 2023. The company had earned a profit of Rs 2,409 crore in the same quarter a year ago,
However total income during the March quarter declined to Rs 2,01,022 crore from Rs 2,15,487 crore in the same period a year ago.