Adani

LIC $30 billion loss on investment in Adani equities

Published

1 year ago

February 24, 2023

On January 30, LIC reported that the overall stock acquisition value across all Adani group firms was $30,127 crore

The investments made in the group companies by state-run insurance giant Life Insurance Corporation of India (LIC) have turned negative as of closing on February 23, according to data analysed from stakes held by the insurance company as per the December shareholding pattern made available on the exchanges. This is primarily due to the significant sell-off in Adani Group stocks.

After the publication of the Hindenburg report, LIC declared on January 30 that at the end of December, it owned 35,917 crores under equity and debt in Adani Group equities. It stated that the market value for the same on January 27, 2023 was 56,142 crore and that the total acquisition value of stock under all Adani group firms is $30,127 crore.

Since the US-based short seller Hindenburg released their research a month ago alleging accounting fraud and stock manipulation, the market value of the group’s 10 listed firms has fallen by $146 billion, or approximately 60%. Adani has refuted the charges.

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With the decline on Thursday, LIC’s investments now have a negative value, or a loss. Please take note that it is assumed that after January 30, LIC has not acquired or disposed of any stock in the Group entities.

LIC’s ownership stakes in Adani Group firms

As of December 2022, LIC owned 4,81,74,654 shares in the company’s flagship, Adani Enterprises Ltd.; this represented 4.23% of the company’s total paid-up capital. As of December, the world’s largest insurer owned 9.14% of Adani Ports, 3.65% of Adani Transmission, 1.28% of Adani Green, and 5.96% of Adani Total Gas. As of September 30, 2022, LIC had approximately 41.66 lakh crore in assets under management (AUM).

According to the Bloomberg Billionaires index, Gautam Adani’s wealth, which is currently valued at $42.7 billion, has suffered significantly as a result of the stock market’s decline. He dropped from being the second richest person in the world the previous year to the 29th slot on the list of the world’s richest people. The Adani Group, a conglomerate with offices in Ahmedabad, was founded by Gautam Adani. Infrastructure, commodities, electricity generation, transmission, real estate, and cement are among the group’s areas of interest.

Why is the Hindenburg so famous?

Thanks to the iconic film footage and the emotional eyewitness account of radio reporter Herbert Morrison (who uttered the famous words “Oh, the humanity!”), the Hindenburg disaster is the most famous airship accident in history.

How many died Hindenburg?

The disaster brought rigid airship travel to a halt. On Friday, it will be 85 years since a zeppelin crashed in New Jersey after catching fire and killing 35 people. On May 3, the Hindenburg left Frankfurt, Germany for Lakehurst Naval Air Station in New Jersey.

What is the total loss of Adani Group?

This is against $150 billion wealth he had in September 2022. In value terms, Adani Total Gas has lost Rs 3.3 lakh crore in market value. At last count, Adani Total Gas commanded a m-cap of Rs 96,657 crore against Rs 4.27 lakh crore as on January 24

Which companies has LIC invested in?

December quarter shareholding pattern shows that LIC had investments in 7 Adani stocks — ACC, Adani Enterprises, Adani Green Energy, Adani Ports, Adani Total Gas, Adani Transmission and Ambuja Cements. LIC’s total assets under management were over Rs 41.66 lakh crore as on September 30, 2022

Has LIC invested in Adani?

According to information presented to Parliament on Tuesday by Union Minister of State for Finance Bhagwat Kisanrao Karad, the government-run Life Insurance Corporation of India (LIC) has invested Rs 30,127 crore “over the previous many years” to buy equity holdings in a number of Adani group companies.