NEW DELHI: The state-run insurer, Life Insurance Corporation of India (LIC), has experienced a notional loss of about Rs 50,000 crore on its investments in Adani Group stocks since the start of calendar year 2023. If some Adani stocks fail to find support shortly, LIC’s investment in the embattled Group, whose listed companies' share prices have plummeted by up to 80%, will likely turn negative as combined profit has now come down to only about Rs 3,000 crore from Rs 53,000 crore profit since the start of this year.
Following a rout in Adani stocks after the Hindenburg Research report, the combined market value of LIC’s investments in Adani Group was valued at Rs 33,000 crore as on February 23 from nearly Rs 83,000 crore as on December 31, 2022. On January 24, when Hindenburg published its scathing report, LIC’s investment value in Adani Cos was valued at Rs 81,000 crore.
The assumption is made that the insurer, also India’s largest institutional buyer, has not bought or sold any stake in Adani companies since January 30, when it had informed that its total purchase value of equity under different Adani Group companies was Rs 30,127 crore.
LIC owns between 1.28% and 9.14% shares in seven listed Adani firms.
In Adani Ports (APSEZ), in which LIC owns more than 9% stake, the value of its investment has come from Rs 15,000 crore as of January 24 to a little less than Rs 11,000 crore on February 23. Similarly, the value of its 4.23% stake in Adani Enterprises has come down from Rs 16,500 crore to Rs 6,660 crore during the period. LIC also owns a little less than 6% stake in Adani Total Gas. Since this Adani stock has nose-dived about 80% in the past one month, LIC’s investment value here has also reduced from Rs 25,500 crore as of January 24 to about Rs 5,200 crore.
LIC owns a 3.65% stake in Adani Transmission and 1.28% in Adani Green. The shares of the two firms have fallen 73% each in one month. LIC’s investment in Adani Transmission is now estimated at Rs 3,000 crore while in Adani Green it is pegged at about Rs 1,000 crore. LIC’s loss in Ambuja Cement and ACC is not very severe.
LIC had said its total exposure in Adani Group companies is 0.975% of its total assets under management (AUM) at book value.
Meanwhile, most Adani stocks closed with deep cuts on Thursday. The Group has now lost about Rs 12 lakh crore in market capitalisation in one month.