LIC increases stake in 4 companies of Adani Group after Hindenburg report, read report

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New Delhi : Earlier this year, on January 24, 2023, after the report of US short seller Hindenburg Research became public, while mutual funds decided to reduce their stake in Adani Group companies, India’s largest insurer Life Insurance Corporation of India (LIC) increased its stake in Adani Group’s four company Adani Green Energy, Adani Total Gas, Adani Enterprises and Adani Transmission in the fourth quarter ended March. However, LIC has reduced its stake in two other companies of Adani Group, Ambuja Cements and Adani Ports and Special Economic Zone. At the same time, LIC’s shareholding in ACC remained the same, which stood at 1,20,33,771 shares or 6.41 per cent at the end of the March quarter.

In which companies of Adani Group, LIC’s stake increased

• According to a report in the English newspaper The Mint, citing data from the stock markets, LIC’s stake in Adani Enterprises was around 4.23 per cent during the quarter ended December, which increased to around 4.26 per cent in the fourth quarter ended March. .

• Further, as an institutional investor, LIC held 2,14,70,716 shares or 1.36 per cent stake in Adani Green Energy as of March 31, 2023, which is about 8 basis points higher than the 1.28 per cent stake held by Adani in December 2022. The score was high.

• Along with this, the largest insurer LIC had a 5.96 per cent stake in Adani Total in the quarter ended December 2022, which increased by about 6 basis points to 6.02 per cent by the end of the March quarter.

• LIC’s stake in Adani Transmission also increased by about 3 basis points. LIC had a stake of about 3.65 per cent in Adani Transmission in the December 2022 quarter, which increased to about 3.68 per cent by the fourth quarter ending March 31, 2023.

• However, in the meantime, LIC’s stake in two Adani Group companies Ambuja Cements came down from 6.33 per cent to 6.3 per cent and in Adani Ports and Special Economic Zone from 9.14 per cent to 9.12 per cent.

lic loan in adani group companies at risk

The report said that last month Finance Minister Nirmala Sitharaman informed the Lok Sabha that LIC’s exposure to Adani Group companies fell marginally to Rs 6,183 crore as on March 5 from Rs 6,347 crore as on December 31, 2022. LIC has a credit exposure of Rs 5,388.60 crore in Adani Ports and SEZ as on March 5, 2023. Adani Power (Mundra) had a loan of Rs 266 crore at risk. Similarly, Adani Power Maharashtra Limited Phase-I has exposure of Rs 81.60 crore, Adani Power Maharashtra Limited Phase-III Rs 254.87 crore, Raigarh Energy Generation Limited Rs 45 crore and Raipur Energy Limited Rs 145.67 crore.

Adani Group shares fall heavily after Hindenburg’s report

Let us tell that in one of its reports on January 24, 2023, American short seller company Hindenburg Research had accused Adani Group of stock rigging and accounting fraud. However, objection was expressed on behalf of Adani Group on Hindenburg’s report and while rejecting the allegations made in the report, it was called baseless and false. Nevertheless, after the report became public, there was a huge decline in the shares of Adani Group companies. Even Adani Group had to cancel the upcoming IPO of Adani Enterprises.

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