Thanks to LIC's significant Adani exposure, recent sell-off in Adani stocks leaves LIC with a sharp erosion in value.
LIC cumulatively holds 37% stake in Adani Group's listed entities. The value of these holdings dropped by Rs 18,800 crore in only 2 days.
LIC's 37% Stake in Adani
As of quarter ending December 31, 2022, LIC held :
a. 4.23% of Adani Enterprises,
b. 9.14% of Adani Ports,
c. 3.65% of Adani Transmission,
d. 1.28% of Adani Green Energy, and e. 5.96% of Adani Total Gas
LIC's Adani connection
As of Dec'22, LIC, India's largest insurer held the highest stake in Adani Ports and Special Economic Zone at 9.14% . It is also the single largest public shareholder in the company.
High-Risk Rollercoaster
LIC's losses have soared with Adani Ports exposure. As the stock's prices crashed, the insurer took a Rs 3,000 crores hit in only 48 hours!
Who's got the insurer's back?
Adani group stocks have dropped after US short-seller Hindenburg Research launched negative report on its debt and high valuations. However, Adani has refuted the claims calling the allegations baseless.