NEW DELHI: Despite drop in share prices by 50-80 per cent, Life Insurance Corporation of India (LIC) increased its stake in four Adani firms -- Adani Green Energy (AGEL), Adani Total Gas (ATGL), Adani Enterprises (AEL) and Adani Transmission (ATL) -- during the March 2023 quarter.
Even though the stake increase is minor, it comes in the quarter when US-based short-seller Hindenburg Research published its scathing report and LIC’s huge exposure in Adani firms became a talking point.
The highest increase in stake by the state-run insurer was seen in Adani Green Energy and Adani Total Gas, the two Adani stocks that witnessed maximum erosion in value after Hindenburg accused the port-to-power conglomerate of stock price manipulation. As per the exchange data available with Trendlyne, LIC, by March 2023 quarter-end, had a 1.36 per cent stake in AGEL. This was 8 basis points (bps) higher than the 1.28 per cent stake as of December 31, 2022.
LIC’s stake in ATGL grew by 6 bps to 6.02 per cent in March quarter as against 5.96 per cent at the end of December quarter. In AEL and ATL, LIC’s stake grew by 3 bps each sequentially. The country’s largest institutional investor held 4.26 per cent stake in AEL as of March-end against 4.23 per cent in the December quarter. In ATL, LIC upped its stake to 3.68 per cent from 3.65 per cent during the three-month period.
LIC stake remained stagnant at 6.41 per cent in ACC. However, it reduced its exposure in Ambuja Cements, from 6.33 per cent in December 2022 to 6.305 in March 2023. In Adani Ports and Special Economic Zone, LIC’s holding came down to 9.12 per cent from 9.14 per cent. It is not known whether the share transactions took place before or after the release of the Hindenburg report on January 24, 2023.
In about a month after the report, LIC’s investment value in Adani firms took a beating of nearly Rs 50,000 crore and for a small period, the return had turned negative. LIC’s investment in Adani Group firms stood at Rs 30,127 crore at the end of January 2023. LIC’s high exposure in Adani stocks is widely criticised by Congress leader Rahul Gandhi and TMC leader Mahua Moitra.