LIC Loses Over ₹16,000 Crore After Adani Stocks Crash

Mumbai: Following the sharp decline in the Adani group’s share price in the wake of the damning Hindenburg report, Life Insurance Corporation of India (LIC)’s share value in the conglomerate equities plunged by over Rs 16,000 crore. LIC sources, however, revealed that there is “no panic” around Adani Group and that the insurance has not sold any shares in today’s decline.

Additionally, according to a document, LIC intends to invest Rs 300 crores in the follow-on public offering (FPO) of Adani Enterprises’ new shares. This would boost its stake from the 4.23% it currently holds.

Shares of the seven publicly traded firms owned by the Adani Group plunged by Rs 4 lakh crore ($5.4 billion) in just two days, with losses ranging from 5 to 20 per cent at the close of trading.

The decline in Adani’s shares also had a knock-on effect on the LIC, the country’s biggest life insurance provider (LIC). LIC, the largest institutional investor in the nation, holds a sizable stake in practically all Adani Group enterprises. LIC owns a 4% share in the company’s parent company, Adani Enterprises, a 9% stake in Adani Ports, and more than a 6% holding in ACC and Ambuja Cement.

Due to today’s decline in Adani Group stock, the mark-to-market value of LIC’s investment book decreased by more than Rs 16,200 crore ($2.17 billion). The value of LIC’s holdings in Adani Group stocks as of Friday’s closing was Rs 76,800 crore ($10.2 billion). The value of LIC’s investments in Ambuja Cement, Adani Total, and Adani Ports declined the greatest.

Market manipulation, accounting fraud, and the use of offshore shell businesses for money laundering are among the allegations made by Hindenburg against the Adani group of firms. However, the conglomerate has refuted these accusations and is thinking about suing the short-seller.