Life Insurance Corporation (LIC) is now more confident than it was a month ago about the business prospects of the embattled Adani Group after the latter’s top officials met with the insurance behemoth’s investment department recently in the wake of the situation arising from the Hindenburg report, its Chairman MR Kumar said on Sunday.
This remark is significant as it comes on the heels of US-based global equity investment firm GQG Partners last Thursday making investments to the tune of ₹15,446 crore in four Adani Group companies through secondary market transactions, fuelling a rally in the Adani Group stocks.
“I believe so. I can only confirm that the conversation (between LIC and Adani Group) has happened with the (investment) department. But there’s nothing you can say as of now. We have had a meeting, and we are quite happy about this meeting,” Kumar said when asked if LIC was more confident now than a month ago about the business prospects of the Adani Group.
Kumar was in the Capital for the 22nd Global Conference of Actuaries, organised by the Institute of Actuaries of India.
Kumar did not comment on the share price movements of the Adani Group or whether LIC is now in the money or otherwise as far as its investment exposure to Adani Group stocks are concerned. “We don’t say it anytime (about being in the money or not). So why now?” he said.
Last month, following the Adani-Hindenburg report saga, LIC said that its exposure to the Adani Group is 0.97 per cent of its total AUM of ₹44.34-lakh crore as of December 31, 2022. On February 24, the value of shares LIC holds in the Adani Group came down to ₹29,893 crore against an overall purchase price of ₹30,127 crore.
However, over the last four trading sessions till March 3, there has been a whopping ₹1.73-lakh crore increase in the combined market capitalisation of Adani Group stocks. The value of LIC’s investment in the Adani Group stood at ₹39,068.34 crore as of March 3.