LIC’s investment value in Adani stocks jump 59% to ₹61,210 Crore

15 Apr 2024 , 11:36 AM

LIC, the state-owned insurance company, saw a 59% increase in the value of its assets in Adani group firms in the fiscal year 2023-24 after the conglomerate recovered smartly from a stinging short seller report.

According to stock exchange data, the value of LIC’s stake in seven Adani group firms increased from ₹38,471 Crore on March 31, 2023, to ₹61,210 Crore on March 31, 2024, representing a ₹22,378 Crore rise.

Last year, the insurance company faced heavy criticism for its choice to invest in the Adani group, which sparked a political slugfest following charges of market manipulation fueled by the Hindenburg report.

Adani Group’s equities, which fell by almost USD 150 billion at their lowest point, have mounted a stunning return, fueled by significant earnings growth across its diversified sectors.

Faced with political pressure, LIC intentionally cut its exposure to two of the group’s major firms, Adani Ports & SEZ and Adani Enterprises, only to see their shares climb by an astonishing 83% and 68.4%, respectively.

Despite reduced ownership, LIC investments showed a 59% increase in value in FY24, according to stock exchange statistics.

While local investors faced pressure, offshore investors seized the chance, with heavyweights such as the Qatar Investment Authority, Abu Dhabi-based IHC, French firm TotalEnergies, and US-based GQG Investment jointly investing almost ₹45,000 Crore in Adani equities.

The value of LIC’s stake in Adani Enterprise Ltd increased from ₹8,495.31 Crore on March 31, 2023, to ₹14,305.53 Crore the following year, according to statistics. The same in Adani Ports and SEZ increased from ₹12,450.09 Crore to ₹22,776.89 Crore as on March 31, 2024.

At around 11.32 AM, LIC was trading 0.33% lower at ₹967.75 per piece, against the previous close of ₹970.95 on NSE. The counter touched an intraday high and low of ₹974 and ₹932.05, respectively.

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