LIC Clarifies On Equity Exposure In Adani Group, Owns Less Than 1 Per Cent Of Total AUM

LIC said that its exposure to Adani Group of companies in the equity and debt segments is Rs. 35,917.31 crores as of December 31, 2022

State-owned insurer Life Insurance Corporation (LIC) on Monday clarified that the firm's total exposure in Adani Group companies is less than 1 per cent of LIC's total assets under management (AUM) at book value. In a press release, LIC said that its exposure to Adani Group of companies in the equity and debt segments is Rs 35,917.31 crores as of December 31, 2022. 

The insurer said the market value for the same as at the close of market hours on January 27, 2023, was Rs 56,142 crores.

Adani Group firm's stocks have suffered owing to a report by US-based short-seller Hindenburg Research. Hindenburg Research alleged that Adani Group had engaged in “a brazen stock manipulation and accounting fraud scheme”. It also accused the conglomerate of improper use of offshore tax havens and flagged concerns about the group’s high debt. 

LIC said, “In the ordinary course of business, LIC does not share details of its company and industrial group specific investments. However, given that certain information is being circulated in the various articles in media and Video Channels about LIC's exposure to Adani Group of companies, we are releasing this information to share the factual position regarding our exposure in Adani group of companies in the equity and debt segments."

"LIC's total holding under equity and debt is Rs 35,917.31 crore as on December 31, 2022 under Adani Group of companies. The total purchase value of equity, purchased over the last many years, under all 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. 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," said LIC in its statement.

The total Assets Under Management by LIC are over Rs 41.66 lakh crore as of September 30, 2022. Therefore, LIC's exposure in the Adani group, as of date, is 0.975 per cent of LIC's total AUM at book value, state insurer said. 

“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," LIC added.