scorecardresearchLIC continues to bet big on Adani, remains in green despite share price

LIC continues to bet big on Adani, remains in green despite share price rout

Updated: 30 Jan 2023, 08:12 AM IST
TL;DR.

LIC, India's largest life insurer, invested about 300 crore in buying 9,15,748 more shares as an anchor investor in a 20,000-crore new share sale by Adani Enterprises Ltd, according to a stock exchange filing of AEL.

FILE PHOTO: The logo of the Adani Group is seen on a building, in Mumbai, India, January 27, 2023. Picture taken with long exposure. REUTERS/Francis Mascarenhas/File Photo

FILE PHOTO: The logo of the Adani Group is seen on a building, in Mumbai, India, January 27, 2023. Picture taken with long exposure. REUTERS/Francis Mascarenhas/File Photo

(PTI) Life Insurance Corporation (LIC) is ploughing more money into Adani group's flagship firm as it continues to be a net gainer despite the plunge in stock prices following a short seller's fraud allegations, filings and stock market data showed.

LIC, India's largest life insurer, invested about 300 crore in buying 9,15,748 more shares as an anchor investor in a 20,000-crore new share sale by Adani Enterprises Ltd, according to a stock exchange filing of AEL.

The shares that LIC picked totalled 5 per cent of the stocks reserved for anchor investors.

In all 33 institutional investors put in 5,985 crore as anchor investors in AEL. LIC already had 4.23 per cent stake in AEL, just like it has holding in other six listed companies of Adani Group.

According to stock exchange information, LIC made a total investment of 28,400 crore in Adani shares over the last few years. The value of these shares was 72,200 crore before the report of the US short seller triggered a stock price crash over the last two trading sessions.

The value of shares that LIC holds in Adani group companies fell to 55,700 crore but it still is a net gainer by 27,300 crore over its original investment.

LIC holds 9 per cent in Adani Ports and Special Economic Zone, 3.7 per cent in Adani Transmission, 1.3 per cent in Adani Green Energy and 6 per cent in Adani Total Gas Ltd.

Other investors who formed part of the anchor investors in AEL's follow-on public offer included Abu Dhabi Investment Authority and Al Mehwar Commercial Investment LLC.

AEL in the stock exchange filing said the FPO committee of its board of directors has finalised allocation of 1.82 crore shares to anchor investors at 3,276 apiece, of which 1,638 per share will be paid by now and the rest in subsequent calls.

First Published: 30 Jan 2023, 08:11 AM IST