Adani stocks: LIC investments in Adani group shares recover to Rs 40,000 crore level

With shares of Adani group companies including Adani Enterprises, Adani Green Energy, Adani Total Gas, among others, recovering from recent lows, value of LIC holdings in seven of group companies hit the Rs 40,000 crore mark, data showed. This is an improvement of 27 per cent over Rs 31,416 crore level its investments were worth as on February 27.

Data available with Ace Equity showed that LIC held over 1 per cent stake in Adani Enterprises, Adani Green Energy, Adani Total Gas, Adani Ports & SEZ, Adani Transmission and recently acquired Ambuja Cements and ACC as of December 31, 2022.

In value terms, LIC's 9.14 per cent stake in Adani Ports was valued at Rs 12,421 crore as on Monday's closing against Rs 11,101 crore as on February 27. LIC held Rs 8,210 crore worth 4.23 per cent stake in flagship Adani Enterprises against Rs 5,750 crore as on February 27.

The Adani group founder and Chairman Gautam Adani saw his wealth recovering to $58 billion from $37.7 billion during the same period.

LIC's 5.96 per cent stake in Adani Total Gas was worth Rs 6,282 crore on Monday against Rs 4,696 crore on February 27. LIC's stake in Ambuja Cements (Rs 4,647 crore against Rs 4,141 crore) and Adani Transmission (Rs 4,353 crore against Rs 2,751 crore) recovered to over Rs 4,000 crore levels.

LIC held 1.28 per cent stake in Adani Green Energy while it owned 6.41 per cent stake in ACC, both of these LIC holdings were worth Rs 2,000 crore as on Monday's prices. Among the two, LIC’s investment value in Adani Green Energy doubled during the period while ACC's investment value remained almost the same.

Overall, LIC's investments in seven Adani group firms stood at Rs 40,038 crore against its actual investments of Rs 30,127 crore in the Adani group companies over the last few years.

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Despite the recent gains, LIC's total investments in Adani group shares are down 51 per cent from January 24 level of Rs 81,268 crore, the day Hindenburg Research came out with its explosive report.

A recent Reuters report suggested that the life insurer is planning to impose caps on its debt and equity exposure to companies, to lower concentration of risk after it faced criticism over its investment in Adani Group companies.

The insurer is planning to cap its debt and equity exposure in individual firms, group companies and companies that are backed by the same promoters, according to the Reuters report that cited sources as saying.

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