LIC's stake in seven Adani group companies increased from Rs 38,471 crore on March 31, 2023 to Rs 61,210 crore on March 31, 2024.
LIC, the state-owned insurance company, saw a 59% increase in the value of its assets in Adani group companies in the fiscal year 2023-24, after the conglomerate recovered smartly from a stinging short seller report.
According to stock exchange data, the value of LIC's stake in seven Adani group companies increased from Rs 38,471 crore on March 31, 2023 to Rs 61,210 crore on March 31, 2024, representing a Rs 22,378 crore rise.
Last year, the insurance company faced heavy criticism for its choice to invest in the Adani group, which sparked a political slugfest following charges of stock manipulation stoked by the Hindenburg report. The Adani group denied any wrongdoing.
Adani Group's stocks, which fell by almost USD 150 billion at their lowest point, have mounted a stunning return, fueled by significant earnings growth across its diversified sectors.
Faced with political pressure, LIC strategically cut its exposure to two of the group's major companies, Adani Ports & SEZ and Adani Enterprises, only to see their shares climb by an astonishing 83% and 68.4%, respectively.
Despite reduced ownership, LIC investments showed a 59% increase in value in FY24, according to stock exchange data.
While domestic investors were under pressure, offshore investors seized the chance, with heavyweights such as the Qatar Investment Authority, Abu Dhabi-based IHC, French firm TotalEnergies, and US-based GQG Investment jointly investing almost Rs 45,000 crore in Adani equities.
According to the data, the value of LIC's stake in Adani Enterprise Ltd increased from Rs 8,495.31 crore on March 31, 2023 to Rs 14,305.53 crore the following year. As of March 31, 2024, the figure for Adani Ports and SEZ had risen from Rs 12,450.09 crore to Rs 22,776.89 crore.
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