LIC Shares Slide over 1% amid Investor Concerns over Adani Group Exposure
On Friday, LIC saw a steep slide of over 1% as investors grew concerned over the insurer’s exposure to the Adani Group. The LIC stock closed at Rs 585, just above its all-time low level of Rs 582. This decline was due to the continuous fall in Adani Group shares, which brought down the valuation of LIC’s investment in the group.
Although Adani Group insiders stated that LIC had booked some profit in January when the stock prices were near their 52-week highs, the insurance major has not yet made a statement about the profit or loss status in its Adani portfolio. According to the last disclosures made to the BSE, LIC’s biggest investment was in Adani Ports & SEZ, in which it had a 9.1% stake. It also held stakes ranging from 1.25% to 6.5% in six other Adani Group companies. LIC’s stock has lost nearly 17% of its value in the last month.
Friday’s session saw 7 of the 10 Adani Group’s stocks closing in the red. Four of these stocks – Adani Total Gas, Adani Green Energy, Adani Transmission and Adani Power – closed at their 5% lower circuit level. Among other laggards, Adani Wilmar closed 3.3% lower while NDTV was down 4.1%. Of the remaining stocks, Ambuja Cements closed 2.4% higher while Adani Ports & SEZ was up 1.2%, and ACC closed unchanged.
Earlier this month, the government disclosed that LIC’s purchase value of equity in Adani Group companies was Rs 30,127 crore. It was also mentioned that the market value of this portfolio at the close of market hours of January 27 was Rs 56,142 crore.
The slide in the group’s stock prices has wiped out Rs 12 lakh crore, or nearly $146 billion, worth of its market value in the last one month. Compared to a combined market capitalisation of Rs 19.2 lakh crore on January 24, on Friday, it was down to Rs 7.2 lakh crore.
IndusInd Chairman Resigns from Adani Green Energy Board
Sunil Mehta, chairman of IndusInd Bank, has resigned from the board of Adani Green Energy due to the private lender granting credit facilities to the company. The RBI had cleared Mehta’s appointment on January 31, but RBI’s rules do not permit bank directors to be on the board of companies their bank lends to. Mehta stated that the credit facilities were granted before his appointment on the board of the bank. IndusInd Bank has decided to hold a postal ballot on a special resolution to appoint Mehta as chairman for three years up to January 30, 2026.
Life Insurance Corporation (LIC) is the largest insurance provider company in India. It has a market share of above 66.2% in new business premium. The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.
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