LIC in its statement said that its total holding under equity and debt is Rs 35,917.31 crore as on December 31, 2022 under the Adani group of companies. 
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LIC in its statement said that its total holding under equity and debt is Rs 35,917.31 crore as on December 31, 2022 under the Adani group of companies. State-owned insurance giant Life Insurance Corporation’s (LIC) exposure to Adani Group companies is within insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) and its risk management framework, said Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM).
He added that the investments of the insurance giant, including in equities, are made following the company’s ‘risk management framework’ and that these investments go into the government securities, which are managed under 'concentration risk portfolio benchmarks'.
“LIC has already made it clear and through a public notice of what their level of investments is and what is their value on a particular date of those investments," he said in an exclusive interview to ANI.
On Monday, LIC said that its total exposure in Adani Group companies is less than 1 per cent of its total assets under management (AUM) at book value. The insurance giant clarified its stand after stocks of Adani Group companies suffered a massive loss due to a scathing report on the conglomerate by US short-seller Hindenburg Research.
Talking about the rout of Adani Group stocks, Pandey said: "They [LIC] go into the safe government securities called Gsecs and they also have some rated bonds and equity. They have their investment strategy of going into different things and they have a concentration risk portfolio benchmarks.”
Pandey, however, added that he was not looking into the Adani Group matter as the subject is not within his remit to comment on any private company, as DIPAM deals with central public sector enterprises.
“I don't think that we can really say that the LIC is impacted this way or that way and whatever it is impacted from the stock price movements, they will be reflected in their books and LIC has already given a clarification. So beyond that, I can say and if you need further clarification you," Pandey said.
On Monday, LIC in its statement said that its total holding under equity and debt is Rs 35,917.31 crore as on December 31, 2022, under the Adani group of companies.
The total purchase value of equity, purchased over the last many years, under all the Adani group companies is Rs 30,127 crore and the market value for the same as at close of market hours on January 27, 2023, was Rs 56,142 crore, it added.
“The total amount invested under Adani Group amounts to Rs 36,474.78 crore as on date. These investments have however been made over a period. Further, it may be appreciated that the credit rating of all of the Adani debt securities held by LIC are AA and above which is in compliance with the IRDAI investment regulations as applicable to all the life insurance companies," said LIC.
On Friday, Adani Group companies continued to make losses after the Hindenburg Research report was made public on January 24.
Shares of Adani Enterprises crashed 76 per cent from their all-time high in just 31 trading sessions early on Friday. The stock, which hit an all-time high of Rs 4,189.55 on December 21, 2022, slipped to a 52-week low of Rs 1,017.10 on Friday, plummeting 75.72 per cent from its peak.
However, the stock recovered 38.81 per cent from its one-year low level to hit a day high of Rs 1,661.
Adani Total Gas fell 56 per cent year-to-date and touched Rs 1,711.50 on Thursday from Rs 3,885.45 on January 24, 2023.
Other group stocks including Adani Green Energy, Adani Transmission, Adani Ports and Special Economic Zone, Ambuja Cements, Adani Wilmar, Adani Power, New Delhi Television and ACC also declined somewhere between 21 per cent and 54 per cent during the same period.
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