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MUMBAI: The company will ask Adani Group for clarification on the Hindenburg report, according to a senior LIC official. As of January 27, the insurance conglomerate claimed that it had acquired Adani stocks in the amount of Rs 30,127 crore over the course of its ownership
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LIC said in a statement on Monday that it has a total equity and debt stake of Rs 35,917 crore in Adani Group. According to the company, the credit rating of all Adani debt securities held by LIC is at least AA, in accordance with Irdai investment regulations that apply to all life insurance companies. In response to media speculation regarding the company's exposure to Adani Group, LIC issued the statement, which has total assets under management (AUM) of Rs 41.6 lakh crore as of September 2022. According to LIC, Adani Group investments have a book value that is less than one percent of the company's AUM.
In response to a Hindenburg Research report claiming irregularities, Adani Group shares have suffered losses over the past three sessions. According to LIC MD Raj Kumar, the insurance company took a long-term approach to its investment "unless there is something going very badly." He continued, "We must gather all information and clarifications, and a subsequent call will be taken." According to Kumar, the decision will also be based on a business profile, internal risk assessment, and growth trajectory.
In Adani Enterprises' follow-on public offer (FPO), LIC invested Rs 300 crore, or 5% of the anchor portion. LIC owns nearly 6% of Adani Total Gas, 9.1% of Adani Ports, and 4.2% of Adani Enterprises. LIC's top investments, according to sources, were not Adani Group but other business houses. According to a report from Reuters, the company is unlikely to invest further in the FPO.
M Jagannath was named the new MD of LIC by the government in the meantime. Jagannath, who previously held the position of zonal manager, will succeed Raj Kumar, whose contract runs out on January 31.
During the presentation of Punjab National Bank's Q3FY23 results, CEO Atul Kumar Goel stated that the lender has an exposure of Rs 7,000 crore to Adani Group, of which Rs 2,500 is to the airport business. The investment spans eight to nine businesses, and the exposure is backed by cash flow. We are keeping an eye on news developments, and as of now, there is no cause for concern because there are cash flows, he stated.