LIC investments in Adani stocks jump 59%

LIC’s Adani investments: LIC, the state-owned insurance giant, has seen a strong rise of 59 per cent in the value of its investments in Adani group companies during the fiscal year 2023-24. The surge comes on the heels of a recovery by the conglomerate following a tumultuous period triggered by a critical short-seller report.

According to data from stock exchanges, LIC's investment in seven Adani group companies has escalated from Rs 38,471 crore as of March 31, 2023, to Rs 61,210 crore by March 31, 2024, marking a substantial increase of Rs 22,378 crore.

In the previous year, LIC came under intense scrutiny for its decision to invest in the Adani group amid a contentious political environment, fueled by allegations of stock manipulation following the Hindenburg report. However, the Adani group vehemently denied any wrongdoing.

Despite facing political pressure, LIC strategically reduced its exposure to two flagship companies of the group, Adani Ports & SEZ and Adani Enterprises. Later, the shares of these companies witnessed surges of 83 per cent and 68.4 per cent, respectively, during the same period, contributing to the surge in LIC's investment value.

While LIC adjusted its holdings, overseas investors seized the opportunity, with entities such as the Qatar Investment Authority, Abu Dhabi-based IHC, French conglomerate TotalEnergies, and US-based CQC Investment collectively injecting close to Rs 45,000 crore into Adani stocks.

The data revealed a strong increase in LIC's investment value across various Adani companies, including Adani Enterprise Ltd, Adani Ports and SEZ, and Adani Green Energy Ltd, among others. Adani Green Energy Ltd witnessed a strong surge, with its value more than doubling in one year.

Since the Hindenburg report, the Adani group has solidified its position as India's premier infrastructure conglomerate, with a strong focus on spearheading the nation's transition towards green energy. Additionally, the group maintains a robust presence in critical sectors such as airports, ports, data centres, and roads.

(With PTI inputs)