State-owned insurer Life Insurance Corporation’s (LIC) chairman M R Kumar said that he will soon call the Adani group’s top management to understand the issues surrounding the ongoing row. In the press conference after announcing LIC’s Q3 earning results, chairman M R Kumar informed that the LIC’s investment department has already reached out to the group.
Kumar was quoted by MoneyControl as saying, “We will call the top management to understand the issues and future plans for the situation.”
LIC also informed that its exposure to the Adani group is 0.97% of its total assets under management (AUM). LIC’s total AUM stood at Rs 44.34 lakh crore as of December 31, 2022, according to LIC’s exchange filing on Thursday.
Earlier, 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 1% of the national insurer’s total investments. In a press release, LIC said that its exposure to the Adani Group of companies in the equity and debt segments is Rs 35,917.31 crore as of December 31, 2022.
The insurer said the market value for the same as at the close of market hours on January 27, 2023, was Rs 56,142 crore.
Adani Group firms’ 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.
On February 7, Union Minister of State for Finance Bhagwat Kisanrao Karad informed the Parliament that LIC has invested Rs 30,127 crore over the last many years to purchase equity stakes in various Adani group companies.
“Total purchase value of equity, purchased over the last many years, under all the Adani group companies is Rs 30,127 crores and the market value for the same as at close of market hours on 27.01.2023 was Rs 56,142 crore,” the minister said.