The value of Life Insurance Corporation’s (LIC) investment in the Adani Group companies went up to ₹44,664 crore on Wednesday, marking a 54 percent rise from the recent lows of ₹28,988 crore, a report by Business Standard stated.
Quoting data from stock exchanges, the report pointed out that a sharp turnaround has been witnessed in the stocks of flagship Adani Enterprises (AEL) and Adani Ports and SEZ (APSEZ). It informed that the value of the investment by LIC, which holds 4.3 percent of Adani Enterprises, has increased to ₹12,000 crore.
Following the controversy triggered by the Hindenburg Research report, AEL shares had hit their lowest on February 27 and have since made a sharp comeback, especially after GQG Partners bet $2 billion on Adani group stocks on March 2.
Currently, LIC holds a 9.1 percent stake in APSEZ – the value of which has jumped to ₹14,144 crore (as on Wednesday), from ₹9,102 crore reported on February 2, mentioned the report.
Meanwhile, the stock of APSEZ has already recovered and is trading at the pre-Hindenburg report levels. The report also observed that the shareholding of LIC did not change between the December quarter and the March quarter. Growth in value also assumes that LIC has not changed its shareholding since April 1 this year, it revealed.
LIC came under sharp attack after Hindenburg Research, a US-based short seller, in a report made several allegations against the Adani group. While the Adani group denied these allegations, the Supreme Court set up a six-member committee.
Recently, the SC panel submitted a report to the top court saying it did not find any lapses on Sebi’s part. Since the report came out, Adani Group shares witnessed a sharp rise. The group’s shares also got a boost with the Adani family selling stakes in group firms to raise funds to prepay their debt, said the BS report.
The report further informed that Group companies are also taking steps to prepay debt and going slow on expansion projects and the conglomeration has slowed down its acquisitions to focus on completing existing projects.
Three group companies, Adani Enterprises, Adani Transmission, and Adani Green Energy plan to raise funds by selling shares to investors, noted BS.