LIC Investments in Adani Group Turn Negative as Stock Prices Plummet State-run insurance giant Life Insurance Corporation of India (LIC) has seen a significant decline in the value of its investments in Adani Group companies. The heavy sell-off in Adani Group stocks has caused LIC’s investment value in the listed group stocks to drop to nearly ₹27,000 crore as of February 23. This marks a loss on LIC’s investments, which have turned negative due to the plummeting stock prices.
LIC Discloses Investment Details in Adani Group Stocks Following Hindenburg Report Following the release of the Hindenburg report, LIC disclosed that it held ₹35,917 crore in equity and debt in Adani Group stocks as of December. The insurance giant’s total purchase value of equity in all Adani group companies was ₹30,127 crore, with a market value of ₹56,142 crore as of January 27, 2023.
Adani Group Stock Prices Plummet, LIC’s Investments Turn Negative Since the US-based short seller Hindenburg released its report alleging accounting fraud and stock manipulation, the combined market value of the Adani Group’s 10 listed companies has slumped by $146 billion or about 60%. Gautam Adani has denied the allegations. The recent fall in stock prices has caused LIC’s investments to turn negative, resulting in a loss on its investments.
LIC Holds Stakes in Adani Group Companies:
As of December 2022, LIC held stakes in various Adani Group companies, including 4.23% of total paid-up capital in Adani Enterprises Ltd, 9.14% in Adani Ports, 3.65% in Adani Transmission, 1.28% in Adani Green, and 5.96% in Adani Total Gas. LIC’s total assets under management were over ₹41.66 lakh crore as of September 30, 2022.
Gautam Adani’s Wealth Takes a Hit as Adani Group Stocks Plummet The sharp decline in Adani Group stock prices has caused Gautam Adani’s wealth to plummet to $42.7 billion, according to the Bloomberg Billionaires index. He has fallen to the 29th spot on the world’s richest list, down from being the world’s second richest last year. Gautam Adani is the founder of the Ahmedabad-based Adani Group, which has interests in infrastructure, commodities, power generation, transmission, real estate, and cement.
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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