The Life Insurance Corporation of India’s (LIC) Rs 30,000 crore investment in Adani stocks turned negative with Thursday’s crash as reported by Live Mint.
Short-Selling firm Hindenburg Research released a report last month alleging the Adani group of accounting fraud and stock manipulation. Adani group has denied the allegations.
The Insurer had invested in 7 out of 10 Adani stocks trading on the National Stock Exchange. The cumulative value of its stake has fallen from Rs 81,268 crore on January 24 to Rs 33,149 crore on February 24 as reported by the Economic times.
According to an India Today report, LIC is looking at a notional loss of Rs 49,728 crore of which Rs 19,034 crore is in Adani Total Gas, Rs 11,906 crore is in Adani Enterprises, Rs 7,493 crore is in Adani Transmission and Rs 5,217 crore is in Adani Ports.
The Adani group stocks held by LIC have lost 25-80% in valuations from Jan 24 to Feb 24:
Adani Enterprises -61.46%
Adani Ports -26.95%
Adani Transmission -74.71%
Adani Green -74.56%
Adani Total Gas -80.60%
Amid criticism from political parties about its investment in the Adani Group, the insurer stated that its exposure to Adani Group companies is about 1% of its total assets under management.
The LIC shares have borne the brunt of the notional loss in Adani Group. The share has fallen from Rs 701.50 on Jan 24 to Rs 584.70 on Feb 24.
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