Life Insurance Corporation of India (LIC) will be calling Adani Group top brass to understand the implications of US-based short-seller Hindenburg Research’s report on the Group.
LIC Chairman MR Kumar said, “We just want to understand what’s been happening in the markets and why has it been happening…We are still in the green on our investments in the Group companies.”
He said that LIC expects the Adani group to throw some light on recent developments involving the Group.
Adani Group company stocks have been battered after Hindenburg Research released a report on January 25, alleging manipulation in these stocks, lapses in corporate governance and financial mismanagement in the Group.
The corporation in a statement on January 30, said it is sitting on investment gains in Adani Group company stocks.
LIC then said its stock purchases over the last many years totalled ₹30,127 crore with the current market value at ₹56,142 crore as on January 27. The total holding of Adani companies equity and debt was ₹35,917.31 crore in December-end 2022.
LIC’s exposure to the Adani group, as on January 30, was 0.975 per cent of its total assets under management (AUM) at book value.
The Corporation officials said their exposure to the Adani Group companies is about 4 per cent of their outstanding stock.
The corporation has made no provisioning on debt exposure to the Adani Group companies as the exposure is “standard”.
“For the equity part, only fair value losses are to be recognised as per IRDAI regulations. But there is no fair value loss at this point of time on overall book/ portfolio basis. We are sitting on huge unrecognised gains at this point of time,” said a senior official .