LIC continues to bet big on Adani Group amid Hindenburg row

LIC continues to bet big on Adani Group amid Hindenburg row

Even as the Hindenburg controversy has taken a massive toll on Adani Group stocks, the Life Insurance Corporation (LIC) is ploughing more money into the group’s flagship firm. Incidentally, it continues to be a net gainer despite the plunge in stock prices.

LIC, India’s largest life insurer, invested about ₹300 crore in buying 9,15,748 more shares as an anchor investor in a ₹20,000-crore new share sale by Adani Enterprises Ltd, according to a stock exchange filing of AEL. The shares that LIC picked totalled 5% of the stocks reserved for anchor investors.

Also read: ‘Fraud is fraud’, says Hindenburg after Adani’s ‘attack on India’ response

In all 33 institutional investors put in ₹5,985 crore as anchor investors in AEL. LIC already had 4.23% stake in AEL, just like it has holding in other six listed companies of Adani Group.

Also read: Surjewala questions FM’s silence over LIC, SBI’s ‘Rs 78k Cr loss’ in Adani stock fall

According to stock exchange information, LIC made a total investment of ₹28,400 crore in Adani shares over the last few years. The value of these shares was ₹72,200 crore before the report of the US short seller triggered a stock price crash over the last two trading sessions.

The value of shares that LIC holds in Adani group companies fell to ₹55,700 crore but it still is a net gainer by Rs 27,300 crore over its original investment.

LIC holds 9% in Adani Ports and Special Economic Zone, 3.7% in Adani Transmission, 1.3% in Adani Green Energy and 6% in Adani Total Gas Ltd.

Also read: Hindenburg disclosure on Adani Group: Clean-up notice to all Indian companies

Other investors who formed part of the anchor investors in AELs follow-on public offer included Abu Dhabi Investment Authority and Al Mehwar Commercial Investment LLC.

AEL in the stock exchange filing said the FPO committee of its board of directors has finalised allocation of 1.82 crore shares to anchor investors at Rs 3,276 apiece, of which Rs 1,638 per share will be paid by now and the rest in subsequent calls.

(With Agency inputs)

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