LIC’s recent meeting with the top management of the Adani Group has generated positive sentiment and confidence in the company’s investment prospects. This comes after the Hindenburg Research report had alleged fraud by the conglomerate, leading to a drop in the value of LIC’s investments and criticism from investors and political leaders.
Despite this, LIC CEO Siddhartha Mohanty has emphasized that all investments are made in accordance with the company’s standard operating procedures and within its prudent norms. He also highlighted LIC’s regular communication with the companies it invests in, indicating a commitment to responsible investment practices.
The Adani Group’s market capitalization had experienced a significant drop following the allegations, but the recent Supreme Court order for an expert panel and markets regulator SEBI to investigate the drop in the group’s shares has been seen as a positive development. Experts view the court’s decision as a potential blessing for investors, and the group’s stocks have been trading with increased optimism since the order.
LIC’s meeting with Adani Group’s management and commitment to responsible investment practices demonstrate a cautious but confident approach to navigating the current market climate. The Adani Group’s performance in the wake of the Hindenburg allegations and the ongoing investigations will likely continue to be closely watched by investors and analysts alike.
What is LIC’s investment in Adani Group companies?
As of December 31, 2022, LIC’s total investment in Adani Group companies was Rs 35,917.31 crore. However, following the recent rally in Adani Group stocks, the value of LIC’s shareholding in the group has risen to Rs 39,068.34 crore as of Friday’s closing price. This indicates a significant increase in the value of LIC’s investment in the Adani Group.
The increase in value is a positive development for LIC, as the company had faced criticism from investors and political leaders following allegations of fraud against the Adani Group by US-based short-seller Hindenburg Research.
Despite the criticism, LIC CEO Siddhartha Mohanty had earlier expressed confidence in the Adani Group’s stocks, stating that all investments were made in accordance with the company’s standard operating procedures and were within LIC’s prudent norms.
Over the years, LIC has played a crucial role in the growth of the insurance sector in India and has a wide network of agents, branches, and online platforms that serve millions of customers across the country.
In addition to life insurance, LIC also offers pension plans, unit-linked plans, and health insurance products, making it a comprehensive insurance provider in India. Its large size, strong financial position, and long history of serving customers have made it a trusted insurance brand in India.