Market value of LIC investment in Adani stocks hits Rs 44,670 crore

Market value of investments made by state-owned Life Insurance Corporation of India (LIC) in seven companies of the Adani group has swelled to Rs 44,670 crore as stock prices rose from the lows seen in the aftermath of the Hindenburg report.

The country's largest insurer and leading institutional investor in the Adani group has seen the market value of its holdings in Adani stocks increase by around Rs 5,500 crore since April, stock exchange data showed.

LIC's biggest bet is Adani Ports & SEZ Ltd where it holds 9.12 per cent shares. At Wednesday's closing price of Rs 717.95 on the BSE, that holding is worth Rs 14,145 crore.

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Its 4.25 per cent stake the group's flagship Adani Enterprises Ltd is worth Rs 12,017 crore at Wednesday's closing price of Rs 2,476.90.

LIC holds stocks worth about Rs 10,500 crore in city gas distribution firm Adani Total Gas Ltd and Ambuja Cement. Other Adani group firms where LIC holds stakes are Adani Transmission Ltd, Adani Green Energy Ltd and ACC.

The rout in Adani stocks after Hindenburg in late January alleged fraud, stock manipulation, and money laundering at the apples-to-port group, erased about USD 145 billion in its market value at its lowest point.

While Adani Group denied all allegations and likened the US investment firm's report to an attack on India, the stock price fall impacted LIC's investment and there was fear that it could book losses.

However, Adani stocks have been on the recovery path since the group helmed by billionaire Gautam Adani put in place a comeback strategy that includes repaying some debt, buying back some bonds, infusion of fresh investment by way of a nearly $2 billion stake buy by a private equity investor, and a planned Rs 21,000 crore fundraising by two group companies.

Stocks have risen after a Supreme Court-appointed expert committee said it has found no evidence of stock price manipulation in Adani group companies while a separate probe by Sebi into alleged violation in money flows from offshore entities has "drawn a blank".

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On January 30, LIC stated that the total purchase value of equity under all Adani group companies was Rs 30,127 crore and the market value for the same on January 27, 2023 was Rs 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 Rs 27,000 crore, as of February 23.

Adani group stocks recouped most of the losses in the recent rally, helping LIC.

As of March 31, 2023, LIC held a 9.12 per cent stake in Adani Ports & SEZ; 4.26 per cent stake in Adani Enterprises; 6.41 per cent in ACC; 6.3 per cent in Ambuja Cements; 6.02 per cent in Adani Total Gas; 3.68 per cent in Adani Transmission and 1.36 per cent stake in Adani Green Energy.