LIC raised exposure to Adani Green, Adani Total Gas, 2 other Adani group stocks in Q4

Life Insurance Corporation of India (LIC) was seen raising its stakes in Adani Green Energy, Adani Total Gas and two other Adani group stocks in the March quarter while it was seen trimming stakes in two others namely Ambuja Cements and Adani Ports & SEZ, data compiled from BSE and corporate database AceEquity suggests. The country's top institutional investor stayed status quo on ACC, as per the data.

A steep fall of 50-80 per cent in Adani group stocks in the aftermath of Hindenburg Research's explosive report had put spotlight on exposure of domestic institutions in the embattled group companies, which prompted big institutions such as LIC issue exposure details.

The US-based Hindenburg Research had accused the Adani group of accounting frauds, stock manipulations and money laundering, but the group had denied any wrongdoing. Later, the Supreme Court asked the market regulator Sebi to probe on the group's offshore deals.

While mutual funds mostly trimmed stakes on the Adani counters, LIC upped stakes in four group stocks, albeit marginally.

In the case of Adani Green Energy, LIC owned 2,14,70,716 shares or 1.36 per cent stake as of March 31. This was 8 basis points higher than 1.28 per cent stake (2,03,09,080 shares) it held in the Adani company as of December 31, 2022.

LIC upped stake in Adani Total Gas by 6 basis points to 6.02 per cent (6,62,00,032 shares) against 5.96 per cent (6,55,88,170 shares) at the end of December quarter.

LIC's stake in Adani Enterprises and Adani Transmission rose by 3 basis points each sequentially. The institutional investor held 4.26 per cent stake in Adani Enterprises against 4.23 per cent QoQ. In Adani Transmission, it upped stake to 3.68 per cent from 3.65 per cent.

LIC remained status quo on its holding in ACC, which stood at 1,20,33,771 shares or 6.41 per cent at the end of March quarter. Two stocks Ambuja Cements (6.3 per cent from 6.33 per cent) and Adani Ports and Special Economic Zone (9.12 per cent from 9.14 per cent) saw marginal cut in holdings by LIC in the quarter gone by.

A Reuters report citing sources last month suggested that LIC was planning to impose caps on its debt and equity exposure to companies. This, it said, was being done to lower concentration of risk after the insurer faced criticism over its investment in Adani Group companies.

The insurer was planning to cap its debt and equity exposure in individual firms, group companies and companies that are backed by the same promoters, the report suggested. LIC's total Adani holding under equity and debt categories stood at Rs 35,917.31 crore as on December 31, 2022.

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