With shares of Adani Group companies extending their rally for the fourth straight day on Wednesday, May 24, the value of Life Insurance Corporation of India (LIC) holdings in seven of the group companies hit the Rs 45,000-crore mark. This is an improvement of 14 percent over Rs 39,878.68 crore its investments were worth on May 19.

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ASLO READ: Adani Group market capitalisation rises 50% from Hindenburg lows, back above Rs 10 lakh crore

Shares of Adani Group's listed companies surged this week after the Supreme Court-appointed A.M. Sapre committee suggested it was not possible to conclude that there was a regulatory failure on the Hindenburg's price manipulation allegation. The Adani Group shares have also gained after a report suggested that the ports-to-power conglomerate was considering monetisation of select real estate assets deemed non-core to its operations.

In value terms, LIC's 4.26 percent stake in Adani Enterprises was valued at Rs 12,812 crore as on Tuesday's (April 23) closing. The state-run insurer holds 9.12 percent stake, worth Rs 14,481 crore, in Adani Ports.

The insurance behemoth holds 1.36 percent stake in Adani Green Energy, while it owns 3.68 percent stake in Adani Transmission — both of these LIC holdings were worth Rs 5,689 crore as on Tuesday's prices. LIC's 6.02 percent stake in Adani Total Gas was worth Rs 5,021 crore on Tuesday.

The state-run insurer owns 6.30 percent stake in Ambuja Cements and 6.41 percent stake in ACC, both of which were worth Rs 7,520 crore.

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LIC's market value was calculated, based on the shareholding as of the March 2023 quarter and close price of stocks on Tuesday, May 23.

On January 27, LIC had disclosed that the value of its investments in the Adani Group stood at Rs 56,142 crore.

The same value, if calculated as per the December shareholding data, comes up to Rs 62,550 crore — a difference of Rs 6,408 crore, or a little over 10 percent.

Meanwhile, Adani Group's listed companies have recovered almost 50 percent of the market capitalisation that they lost after the explosive report of US-based Hindenburg Research. The group's market capitalisation crossed the Rs 10 lakh crore mark earlier on Monday (May 22), a strong recovery from the Rs 6.8-lakh crore low that it fell to on February 27.

Since late January, the Gautam Adani-led group has seen its market cap slide by more than Rs 12 lakh crore, a fall of over 60 percent from the peak. The fall in share prices drew concerns over the exposure of LIC and other state-run entities to the group.

(Edited by : Shoma Bhattacharjee)

First Published:May 24, 2023 5:26 PM IST