Adani stocks: Market value of LIC investments in Adani group shares hit Rs 45,000 crore

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With shares of Adani Group companies extending their rally for the fourth straight day on Wednesday, value of Life Insurance Corporation of India (LIC) holdings in seven of group companies hit the Rs 45,000 crore mark. This is an improvement of 14 percent over Rs 39,878.68 crore level its investments were worth as on May 19.

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Shares of Adani Group’s listed companies surged this week after the Supreme Court-appointed AM Sapre committee suggested it was not possible to conclude that there was a regulatory failure on the Hindenburg’s price manipulation allegation. The Adani Group shares have also gained after a report suggested that the ports-to-power conglomerate was considering monetisation of select real estate assets deemed non-core to its operations.

In value terms, LIC’s 4.26 percent stake in Adani Enterprises was valued at Rs 12,812 crore as on Tuesday’s closing. The state-run insurer held Rs 14,481 crore worth 9.12 percent stake in Adani Ports.

The insurance behemoth held 1.36 percent stake in Adani Green Energy, while it owned 3.68 percent stake in Adani Transmission, both of these LIC holdings were worth Rs 5,689 crore as on Tuesday’s prices. LIC’s 6.02 percent stake in Adani Total Gas was worth Rs 5,021 crore on Tuesday.

The state-run insurer owned 6.30 percent stake in Ambuja Cements and 6.41 percent stake in ACC, both of which were worth Rs 7,520 crore.

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LIC’s market value was calculated based on the shareholding as of March 2023 quarter and Tuesday’s close price of stocks.

Company Stake
Adani Transmission 3.68
Adani Ports and SEZ 9.12
Adani Enterprises 4.26
Ambuja Cements 6.3
ACC 6.41
Adani Green Energy 1.36
Adani Total Gas 6.02

On January 27, LIC had disclosed that the value of its investments in the Adani Group stood at Rs 56,142 crore.

The same value, if calculated as per the December shareholding data comes up to Rs 62,550 crore — a difference of Rs 6,408 crore, or a little over 10 percent.

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Meanwhile, Adani Group’s listed companies have recovered almost 50 percent of the market capitalisation that they lost after the explosive report of US-based Hindenburg Research. The group’s market capitalisation crossed the Rs 10 lakh crore mark earlier on Monday, a strong recovery from the Rs 6.8 lakh crore low that it fell to on February 27.

Since late January, billionaire Gautam Adani-led group has seen its market cap slide by more than Rs 12 lakh crore, a fall of over 60 percent from the peak. The fall in share prices drew concerns over the exposure of LIC and other state-run entities to the group.