Adani Enterprises, Adani Ports, Adani Energy shares: LIC sees Rs 3,950 cr notional loss on Adani stocks in 8 days

A fall in shares of Adani Enterprises Ltd, Adani Ports & SEZ Ltd and Adani Energy Solutions, among other Adani group stocks, in recent days resulted in a notional loss of nearly Rs 4,000 crore for Life Insurance Corporation of India (LIC). The life insurer has investments in seven Adani companies including ACC, Ambuja Cements, Adani Total Gas Ltd and Adani Green Energy Ltd, as per data compiled from corporate database AceEquity.  

The combined market value of these LIC holdings have fallen Rs 3,951 crore to Rs 44,743.94 crore as on Friday's trading session against Rs 48,694.65 crore on August 22. The Adani group m-cap has fallen to sub Rs 10.50 lakh crore mark from Rs 11.47 lakh crore on August 22.

During this period, the markets regulator Sebi submitted its status report on Hindenburg allegations, a SC hearing on the matter got postponed while a report by Organised Crime and Corruption Reporting Project (OCCRP) talked about opaque investments in Mauritius funds that obscured involvement of alleged business partners of the Adani family.

LIC’s holding in Adani Enterprises, which stood at 4.26 per cent as of June 30,  saw an erosion of Rs 1,360 crore in value terms since August 22. Adani Ports, where LIC owned 9.12 per cent stake, gave the life insurer a Rs 1,181 crore dent. LIC also took notional hit on stakes in Adani Energy Solutions (Rs 584 crore), Ambuja Cements (Rs 395 crore), Adani Total Gas (Rs 264 crore) and Adani Green Energy (Rs 194 crore).

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The Adani group categorically rejected the "recycled allegations" and said the news reports appear to be yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report.

"In fact, this was anticipated, as was reported by the media last week. These claims are based on closed cases from a decade ago when the Directorate of Revenue Intelligence (DRI) probed allegations of over invoicing, transfer of funds abroad, related party transactions and investments through FPIs. An independent adjudicating authority and an appellate tribunal had both confirmed that there was no over-valuation and that the transactions were in accordance with applicable law," Adani group said in response.

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