LIC Adani Top Management Call Strategy Hindenburg Research Stock Manipulation Accounting Fraud Scheme

LIC Adani Top Management Call Strategy Hindenburg Research Stock Manipulation Accounting Fraud Scheme

State-owned insurer Life Insurance Corporation (LIC) will reportedly schedule a call with  Adani’s top management to understand their strategy. LIC has not sold any shares in Adani Group stocks in the current fall, claimed a CNBC report on Friday, citing sources.

Earlier this week, LIC said it has an exposure of Rs 36,474.78 crore to Adani group’s debt and equity, and the amount is less than one per cent of the national insurer’s total investments. In a press release, LIC said that its exposure to Adani Group of companies in the equity and debt segments is Rs 35,917.31 crores as of December 31, 2022. 

Meanwhile, an Adani Group spokesperson, who did not want to be named, told ABP Live that no such meeting with the LIC has been scheduled as of now.

Adani Group firm’s stocks have suffered owing to a report by US-based short-seller Hindenburg Research. Hindenburg Research alleged that Adani Group had engaged in “a brazen stock manipulation and accounting fraud scheme”. It also accused the conglomerate of improper use of offshore tax havens and flagged concerns about the group’s high debt. 

The insurer said the market value for the same as at the close of market hours on January 27, 2023, was Rs 56,142 crores.

“In the ordinary course of business, LIC does not share details of its company and industrial group specific investments. However, given that certain information is being circulated in the various articles in media and Video Channels about LIC’s exposure to Adani Group of companies, we are releasing this information to share the factual position regarding our exposure in Adani group of companies in the equity and debt segments,” the insurer added.

The total Assets Under Management by LIC are over Rs 41.66 lakh crore as of September 30, 2022. Therefore, LIC’s exposure in the Adani group, as of date, is 0.975 per cent of LIC’s total AUM at book value, state insurer said. 

“Further, it may be appreciated that the credit rating of all of the Adani debt securities held by LIC are AA and above which is in compliance with the IRDAI investment regulations as applicable to all the life insurance companies,” LIC added.

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